In this Fast Funding Info, Nate Dodson explains the prerequisites for an individual, married couple, or entity to be considered an accredited investor.
What is an accredited investor? An accredited investor, if they’re an individual, it means that they’re making at least two hundred thousand dollars a year, or if they’re married they’re making three hundred thousand dollars a year for the past couple of years, or if they have a net worth of a million dollars or more. However, you subtract from your net worth any positive equity from your primary residence. For an entity or an LLC, if all of the owners are individually accredited investors or the entity has more than 5 million dollars in assets. There are quite a few other categories of accredited investors, all of which have to do with a minimal income, asset holdings–or a recent category is financial advisors and family investment offices.
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To check out the SEC’s updated investor bulletin for more info, click here