Investor Education

Accredited Investors

Many private real estate offerings are available only to accredited investors. The definition is set by the U.S. Securities and Exchange Commission and can be met through financial criteria or certain professional qualifications.

Who Qualifies

Several paths can satisfy the accredited-investor standard.

For individual investors, the most common routes are income, net worth or certain qualifying professional credentials. The SEC also recognizes additional categories for entities and other investors.

Income Test

Individual or joint income

$200K / $300K

An individual may qualify with income above $200,000 in each of the two most recent years, or joint income with a spouse or partner above $300,000, together with a reasonable expectation of reaching the same level in the current year.

Net Worth Test

Net worth above the threshold

$1M+

An individual may qualify with net worth above $1 million, alone or together with a spouse or partner, excluding the value of the primary residence.

Professional Criteria

Certain qualifying credentials

7 · 65 · 82

Individuals holding certain SEC-designated securities licenses in good standing—including Series 7, Series 65 and Series 82—may also qualify as accredited investors.

This is a simplified overview of common individual qualification standards and is not a complete statement of Rule 501(a). Other categories may apply to entities, trusts, family offices, knowledgeable employees and certain other investors. Current SEC rules and the applicable offering documents control.
Verification

What “reasonable steps to verify” means.

Rule 506(c) requires more than simply asking an investor to check a box. The verification process is designed to give the issuer a reasonable basis to conclude that the purchaser is accredited.

Income documentationVerification may include reviewing relevant IRS forms reporting income, such as W-2s, 1099s, K-1s or tax returns.
Net-worth documentationVerification may involve reviewing qualifying asset and liability documentation together with required investor representations.
Professional confirmationA registered broker-dealer, SEC-registered investment adviser, licensed attorney or CPA may provide written confirmation when the rule's requirements are satisfied.
Facts and circumstancesRule 506(c) also permits a principles-based approach in which the issuer considers the particular investor, information available and terms of the offering.
Investing With Laager

A straightforward eligibility process.

Laager's publicly marketed offerings are intended for accredited investors. Eligibility and verification requirements are described in the applicable offering materials, and investors are guided through the required process before an investment is accepted.

When an investor is ready to proceed, Laager can provide access to a streamlined third-party verification process. Depending on the investor's circumstances, verification may be completed through income documentation or through an eligible professional who can provide the required confirmation.

Accredited status is an eligibility standard; it is not a determination that a particular investment is appropriate for an individual investor. Each investor should evaluate the specific offering, its risks, expected hold period and personal financial circumstances before investing.

View Current Opportunities
Review the opportunityStart with the deal-specific materials, business plan, financing structure and risk disclosures.
Confirm eligibilityDetermine which accredited-investor category applies to your circumstances.
Complete verificationUse the streamlined third-party process provided by Laager or qualifying professional confirmation, as applicable.
Complete subscriptionEligible investors execute the applicable subscription and offering documents before funding.

Looking for the official definition?

The SEC maintains current guidance on accredited-investor qualification and Rule 506(c) verification requirements.

SEC Verification Guidance

Important Disclosures

This website is provided for general informational purposes only. Nothing on this website constitutes investment, legal, tax or accounting advice, or an offer to sell or a solicitation of an offer to buy any security. Any offering will be made only through the applicable offering documents and only to persons who satisfy the eligibility requirements described in those documents.

The accredited-investor information above is a general summary and may not reflect every category, exception or interpretive issue under applicable securities laws. Investors should consult the current SEC rules and their own advisers regarding their individual circumstances.