Not believing in false advertising, increasing basic knowledge about the United States, avoiding herd mentality in investments, strengthening due diligence, and hiring independent lawyers are all effective methods to avoid the pitfalls of investment immigration. In the face of exaggerated or even false advertising, investors must possess the ability for rational analysis.
First, do not believe in the false advertising of intermediaries, but trust your own rational judgment. When it comes to investment immigration, intermediaries often present attractive rhetoric, appealing guarantees, and beautifully packaged brochures, highlighting the advantages of the projects and encouraging investors to part with their cash. There are often many intermediaries involved in false advertising. What is the real situation? The U.S. Citizenship and Immigration Services (USCIS) is only responsible for reviewing whether the employment opportunities are reliable, but it does not assess the profitability prospects of the projects. Moreover, USCIS specifically warns against using phrases like "the project will definitely be profitable, and you will definitely get your money back" because investment itself is inherently risky.
Investors must make rational analyses when judging projects. They should also have some basic understanding of the United States. "For example, is a government-supported project necessarily a good one? Do not blindly believe that the U.S. government will oversee investment projects. All levels of government in the U.S. welcome foreign investment, which is why many regional center promotional materials feature letters of congratulations from governors or legislators. However, regional centers are private companies, and the U.S. government will never cover issues arising from private companies.
In summary, do not invest in what others are investing in. Learn more, understand more, and choose projects with your own judgment.
Second, conduct due diligence. Before investing in a project, is it necessary to investigate the entire project before proceeding? Theoretically, it should be. Who are the real operators behind the project? Does the company have a bankruptcy record? Do they have experience in executing projects?
"If you hire a lawyer to conduct due diligence before investing, it should be the safest option. However, hiring a lawyer for this investigation will cost at least ten thousand dollars, and very few people are willing to do so. From the cases I have handled, almost no investors are willing to spend this extra money," said Qiu.
In fact, such investments are akin to gambling with your eyes closed. It is difficult to guarantee the safety of the investment. Currently, if investors really do not want to spend this money, they can investigate the project's history more thoroughly. Generally speaking, I would advise investors to invest in mature projects that have been around for a long time and have many successful precedents. I would be more cautious with new projects or those with excessive jargon.
"Chinese people are often willing to invest in real estate-related projects, which I completely understand. This is because real estate is a relatively straightforward concept with relatively obvious returns. However, projects like using corn oil as fuel or electric vehicles as renewable fuel are relatively new, and the trends are difficult to grasp, so I would not recommend investors to try them. It has been proven that the corn fuel project also failed."
Third, hire an independent lawyer to handle the case. Generally, intermediaries will recommend lawyers to investors. However, such lawyers usually have a cooperative relationship with the intermediary company. If a lawyer relies on the intermediary company to introduce clients, there will always be a certain conflict of interest between them. If there are any issues with the project, the lawyer will only raise them in a roundabout way rather than stating them directly.
"This is similar to how divorcing couples cannot hire the same lawyer; they are opposing parties, so each must hire a lawyer to represent their own interests. The same applies to investment parties; the interests of investors and investment projects cannot be completely aligned. Therefore, if you can hire your own lawyer, they can truly represent your interests. If there are any issues with the project, the lawyer can provide investors with timely, comprehensive, and unreserved feedback."