Accredited Investor

An investor with a certain level of income or net worth who is able to participate in a private placement of securities under SEC guidelines.

The most common criteria for an accredited investor include:

  • Earning > $200k of annual personal income or
  • Earning > $300k of joint annual income with spouse or
  • Exceeding > $1 million net worth exclusive of your personal residence

However, you don’t have to be a millionaire to be an accredited investor. On August 26, 2020, the SEC amended its qualifications and can now qualify you as an accredited investor if you are a holder in good standing of the Series 7, Series 65, or Series 82 licenses.

Commerical Real Estate Glossary

Explore more answers to commonly used real estate investing terminology