What Steps Should Someone Take When It Comes To Due Diligence?

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What Are The Major Factors Someone Should Look At To Ensure They Have Done Due Diligence When It Comes To The Immigration?

When it comes to the immigration part, the issues are relating to past experience in business.

Talking about the regional center, how long they’ve been in business, how many I-526 approvals do they have, do they have any denials, what were the reasons, did they take those cases to federal court, what happened in federal court assuming they did, how many conditional Green Cards got approved, were there any denials because of project reasons.

So, someone could be denied for an I-526 having nothing to do with the project or the regional center; it could be source of funds. Someone could get denied a conditional Green Card, again, with nothing to do with the regional center project; it could be they had a past conviction they never told the attorney about.

So, again going back to what was mentioned earlier, on one of the three types of due diligence and this is the immigration due diligence. Since it takes about 5-6 years to get a permanent Green Card, it is tied in to player longevity and that will make sure that this is the project that’s going to have staying power and not only that, that the jobs are going to be there in 5+ years because that’s what removal of condition is about, are there still, for regional center, direct and indirect jobs that are attributable to the investor.

One thing an investor has to at least look at the beginning in their immigration part of the due diligence is that if they are one of the last investors in the project, and jobs are based on time of filing the application and you’re one of the last one in, that’s potentially the last one to file, you get the last jobs.

So, if there is ever an issue down the line on jobs, then you get the last. So, if there are 100 investors and you need a thousand or more jobs and for whatever reason that only 950 at the end are approvable, people who did the last five investments may be out of luck unless it has to do with slowing of getting occupancy and other leases that have come up that cover the last investors.

So, there are always these issues. If the job’s report is very strong and shows a nice cushion, initially they projected 1,500 jobs instead of 1,000, and that analysis looks good, then even if you’re last investor, you shouldn’t have anything to worry about.

What Steps Need To Be Taken To Ensure Financial Due Diligence?

When they go through a broker dealer, that should be covered substantially.

If you’re picking out your own investment, some people only want financial due diligence because their main concern was that they want to make sure that they are going to get their money back at the end of the process, and that’s what the financial due diligence covers.

In this situation, Attorney Mark Ivener gives all of his clients the names of financial analysts, but then it’s still up to them because it costs $4,000 to $5,000 to do a financial due diligence, so they have to be willing to spend that in order to get that.

If someone is going through a broker dealer for them to do the recommendation, generally speaking, there is no upfront charge; some do have a small upfront charge, but they’re primarily paid through the regional center and that comes out of the administrative fee that they pay.

If you want information regarding Steps To Take When It Comes To Due Diligence, call the law office of Mark Ivener for a free initial consultation at (310) 477-3000 and get the information and legal answers you’re seeking.

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