Changes to Definition of Accredited Investors

[Andy Mirza]

There's hope that the definition of accredited investors will change in the near future. The House overwhelmingly passed JOBS Act 3.0 on a bipartisan basis by 400+ votes. With this amount of support, the Senate will surely pass it as well and Trump will probably sign it into law. The definition of accredited investor will be updated to include "an individual determined by the Securities and Exchange Commission (SEC) to have qualifying education or experience." Hopefully, that will mean that more people will qualify as accredited investors and be able to invest in opportunities that were previously unavailable to them.

See the story from Housing Wire and a link to the bill in Congress:

https://www.housingwire.com/articles/46106-house-p...

https://www.housingwire.com/articles/46085-waters-...

https://www.congress.gov/bill/115th-congress/house...

I've got my fingers crossed! Not only will this help my business but I think it's more fair for everybody......

[Mike Dymski]

I have 15 years of experience in investing in actively owned real estate and 3 years of very immersed experience in passive investing in private placements and it is still challenging to source and select conservative opportunities (particularly in today's market).  The "look at 100 and close on a couple" adage is as applicable in passive as it is in active investing but many investors simply do not follow it.  They hear the words private placement, see fancy offering materials, and watch rousing deal webinars and they get that excited (premature) bowel movement feeling.

The financial protections (net worth and/or income) from the high risks of private placements are important and just having the knowledge part may not be sufficient protection.  We have to look past the lens of just trustworthy and prudent offerings to all the bad ones out there (and I see a ton of them).