How can I do the due diligence on an EB-5 project?

Look at it like anything you would invest in or hire experts to look at the quality of the management, the finances of the company. Where are they getting the money to make the project a success. Have they gotten the necessary permit and approvals from the local entities, etc.

You need to consider three main criteria for choosing an EB-5 project to make sure you can successfully obtain your unconditional permanent green card and get back your investment funds as much as possible:
1. Will the project sufficiently create ten jobs for each investor? If the project is a regional center project, they can create most of the required jobs through construction. You need to review their business plan and economic analysis report to see if the total construction costs can create sufficient jobs for all investors. Ideally the total number of estimated construction jobs should be more than the total required jobs for all investors. Also, if the project needs more jobs through operation, you should pay more attention because the jobs created through operation may have higher risk because they may not fulfill eventually.
2. How can EB-5 investor withdraw from the project and get the funds back? EB-5 investors should review the subscription agreement and partnership agreement to confirm when and under what conditions EB5 investors can withdraw or request to refund the investment funds. The minimum period of risk is two years. If investors can withdraw and get the funds back in three to five years, it should be the best.
3. How does the project company (normally the job creation entity (JCE) or regional center (RC)) protect your investment funds? This question is also related to the question of whether the JCE or RC can ensure your funds are used to the job creation. There are three major ways for the EB-5 funds to enter the project: 1. senior loan, 2. preferred stock, 3 mezzanine loan. Senior loan is less risky than the other two. Mezzanine loan is the riskiest. Whether the JCE or RC will give your periodical construction reports is also important because you can know if the EB-5 funds are used in the construction for creating jobs. An EB-5 investor should keep asking the JCE or RC to provide update on the construction and use of the funds.