Sophisticated vs. Accredited
What is a Sophisticated Investor?
A sophisticated investor is anyone who does not meet the requirements of an accredited investor, as defined by the SEC but has sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of a prospective investment.
Another term used for a sophisticated investor is a non-accredited investor or a retail investor. This includes any investor whose net worth is less than $1 million and has an annual income under $200,000 individually (or $300,000 with a spouse).
While sophisticated investors may not qualify for all of the real estate investing opportunities as an accredited investor does, WE offer investment opportunities that welcome sophisticated investors, as long as we have a prior existing relationship with you.
If you ever have any questions or concerns about investing, we are available to chat whenever you want or need to. We stand by you in this entire process and keep you informed along the way. Communication and transparency are important and we understand that those facets are critically important for building trust.
Accredited Investors Must Meet ONE of the Following:
Personal Income Requirement: Accredited investors individual income has been $200,000 or more in the past two years, and they have reasonable expectation of reaching the same income level this year.
Joint Income Requirement: Accredited investors joint income with their spouse has been $300,000 or more in the past two years, and they have reasonable expectation of reaching the same income level this year.
Net Worth Requirements: Accredited investors individual net worth (or joint net worth with their spouse) exceeds $1,000,000, excluding their primary residence.
Business: Invest on behalf of a business or investment company with more than $5 million in assets and/or all the equity owners are accredited.
Personal Certifications: Natural persons to qualify as accredited investors based on certain professional certifications, designations, or credentials, including the Series 7, Series 65, and Series 82 licenses as qualifying natural persons.
Until next time…
Explore more. Adventure Awaits.
