A clear source of funds report is one of the most important components of a successful I-526 petition. Naturally, you know where your money is, but it is easy to overlook the need for advance preparation and legal advice. And many EB-5 investors are surprised by the amount of time and documentation required before filing the I-526 petition.

Here are some tips for EB-5 investors on how to prepare for the I-526 source of funds report:

• Plan Ahead for Which EB-5 Sources You Would Like to Use

Identify which funds you have available now or can be made available simply and quickly with the least complication. Pick sources that are the easiest to document to their source of origination. You may need to coordinate with third parties for additional documentation. For example, if you are using a gift, you will not only need documents reflecting the gift transfer but also documents that identify the donor’s source of funds.

• Pick Sources with a Simple History

You may have recently sold an investment property and assume you have a simple case. But USCIS has become increasingly strict in the detail of documentation even for such a simple transaction.

Not only do you need to document the sale of the property and repayment of any mortgage loan used to purchase the property, but in most cases, you also need to document the original funds used for the down payment.

This can quickly become complicated if the down payment was made several years ago or came from a variety of places, such as the sale of stocks, savings from salary over several years, or a gift from your parents.

In each case, the investor needs to document the full history of the source and path of funds, including funds received from third parties. If you are unable to obtain all the necessary documents, you would risk an RFE or denial from USCIS. Otherwise, you would need to identify a simpler option.

• Don’t Forget About Translations

In general, anything you are submitting in a source of funds report needs to be translated for USCIS. You should work with an experienced EB-5 attorney or accounting firm to plan exactly which items you will need to include in the report. Once identified, then you will need to schedule time for the proper translation of any non-English documents. This can be quite extensive. For example, if one of your sources derives from cash distributions over 5 years, you may need to translate 5 years of bank statements, transfer receipts, etc. to show the full source and path of funds.

Start NOW, Don’t Underestimate the Time it Takes

To begin the EB-5 investment process, you need to:

• Identify the sources of funds to be used
• Identify which documents are needed for those sources
• Translate the documents if necessary
• Clearly write the report

EB-5 Investors should know that to get an EB-5 visa, the source of funds report needs to be substantial, backed by clear evidence and organized efficiently so USCIS can offer a swift approval. An inadequate EB-5 source of funds report is the most common reason that EB-5 investors’ I-526 petitions are denied. The source of funds reports take time, so remember to plan ahead.