Non-Accredited Investor with $200k

[Anthony Gayden]

I am selling one of my properties and doing a 1031 exchange. The property is currently under contract and I will likely make around $200,000 profit. I have already made arrangements to do a 1031 exchange.

I want to take the majority of the money,$150,000, and invest directly into real estate, but I also am interested in putting $50,000 into a passive syndication for the first time.

I fall short of being an accredited investor, so I was wondering about my options.

[Dave Foster]

Thanks for the shout out @Jaysen Medhurst.  @Anthony Gayden it's probably going to be tough to find a syndication that will qualify for your 1031 money - especially if you're only looking to put in $50K.  Your intermediary should be exploring this with you or have already talked to you about it.  But generally in a syndication you are purchasing a membership interest in a limited partnership and not actual deeded real estate.  This does not qualify for 1031 treatment.  So you will pay tax on that amount.

Sometimes a syndicator will have accommodations made so you can purchase a tenant in common interest in the real estate with the partnership which would keep the 1031.  But it's a lot of work for them to do so and keep it 1031 compliant.  So i don't know if you could entice a syndicator with $50K.

DSTs are typically for accredited investors only.  However Tenant In Common (TICs) can be found where accreditation is not required.