What Is An Accredited Investor?
Remember those italicized blurbs in the margins of our school text books? They were often the most important words and phrases that grabbed our attention and let us know where to focus. We’re taking a moment today to do the same thing with a technical term you’ll find around here: Accredited Investor.
If you're looking to start passively investing in real estate, you'll likely be asked if you're an accredited investor. Despite what some people think, there’s no test you need to take or certificate to earn to become one. These are actually two* simple ways you can qualify as an accredited investor:
- 1. If you have an income of 200K as an individual, or 300K as a married couple, for at least 2 years and a reasonable expectation that you will have that income again in the next year, then you are an accredited investor!
- 2. If you have a net worth of one million dollars, not including your primary residence, you are an accredited investor!
*The SEC has proposed some new rules that would allow certain sophisticated financial professionals to also qualify as accredited investors, but those rules have yet to pass.
Why is knowing your accreditation status important? It's important because due to SEC rules, certain investing opportunities are only available for accredited investors.
Whether or not you are an accredited investor, you are eligible for many passive investing opportunities (like the ones we offer through the Real Estate Investor Goddesses Investor Club).
Are you an accredited investor? If so, congratulations. You are part of roughly 8% of the US population who qualifies. If you're not yet, it could be a goal to aspire to.
About Monick halm
Monick Halm, founder of Real Estate Investor Goddesses, is an educator and advocate for female real estate investors, Her mission is to help 1 million women achieve financial freedom through real estate investing. To find out more about Monick and connect with her, go to www.reigoddesses.com.
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