What is an Accredited Investor?
An accredited investor is person who is allowed to invest in securities that are not registered with the SEC. There are 2 main ways to qualify as an accredited investor:
Frequently Asked Questions
-
What is an Accredited Investor?
An Accredited Investor is an individual who is permitted to invest in securities that are not registered with the SEC.
-
What qualifies an Accredited Investor?
There are two ways for an individual to qualify as an accredited investor.
1. You have had an income of $200,000 per year or more for the last two years as an individual, or $300,000 of joint income per year for the last two years.2. At the time of the security sale, you as an individual, or you joint with your spouse, have a net worth of over $1,000,000, excluding the value of your primary residence. -
Do I need to register with government as an Accredited Investor?
No. An accredited investor does not need to go through any particular process or file any paper work with any governmental body. The responsibility falls on the company or fund offering unregistered securities to conduct due diligence on their potential investors to ensure they are accredited.
This means an investor can expect a fund offering unregistered securities to ask for proof of income or net worth before the sale is made.
-
Which Opportunity Zone Funds require their investors to be accredited?
Any Opportunity Zone Fund structured under the 506(c) regulation requires their investors to be accredited.