Flip & Dani talk about what is an accredited Investor and how to become one.
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Today we talk about what is an accredited Investor and how to become one.
Flip discusses the breakdown on how to be an accredited investor.
1) You, as an individual, you make $200,000 a year and have for the last 2 years and you expect to the same next year. Or, if you are married as a couple, you make $300,000 a year and have for the last 2 years and you expect to the same next year.
2) To have $1,000,000 in Net Worth, minus your personal residence.
These are either / or, you don’t have to have both to be an accredited investor.
Dani explains why this is so important to be an accredited investor.
Dani talks about the Amendment from August 26th, 2020. The SEC amended what the definition of Accredited Investor were, so that more people could have the potential to be an accredited investor.
1) You can have a Series 7, 65 and 82 financial licenses. If you have these 3 licenses then you qualify to be an accredited investor.
2) You can be a knowledgeable employee of a private fund and you are accredited for that fund.
3) Spousal equivalents - very similar to common law connection between 2 people where you can combine their resources to qualify to be an accredited investor.
4) You can have an LLC or a Family Office that has $5,000,000 in assets. If you have that then you qualify to be an accredited investor.
If any of these sound like you might qualify for, then do a google search for “august 26th 2020 amendment to SEC accredited status”
Lastly, how do you know if its an investment that requires only accredited investors. Just ask!
If you see a disclaimer that says it is a 506C then it is for accredited investors only. If you see it being advertised then it is for accredited investors only.
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