can i invest in apartment deal without being sophisticated investor?

[Jeremy Able]

ok, so i do the lifestyles 2 day class.  great class-very informative.

one thing they talk about is some people being passive investors with as little as 10k in an apartment deal, but they say you have to be a "sophisticated investor" for it to be legal.  of course you can pay $18 grand and become one, but i just cannot afford that at this time.

Is there another way?

i have 10k to get either my first rent house or get into an apartment deal.  

thanks!

[Kyle J.]

Are you sure the term wasn't "accredited investor"?  That is a term used by the SEC and has an actual definition here. 

On the other hand, a "sophisticated investor" is a term that is a bit more ambiguous and could mean different things to different people.  And I'd have a hard time believing/understanding how paying $18k would suddenly make you one. 

As to your last question....$10k towards a house or apartment deal...personally I'd prefer to use it towards a house, especially if you're just starting out.  For one, you'd be the sole owner of the house and in complete control of its success.  However, investing only $10k towards an apartment deal would have to be a pretty small drop in the bucket I'd imagine, so you'd be heavily dependent on the decisions/actions of the syndicator of the deal and/or other larger investors for the success of your investment.  Since it doesn't sound like you know these other investors very well (or maybe not at all), I'd be a little leery of that - again, especially if you're just starting out.

Best of luck to you!