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Accredited Investor Requirements, In Plain English
You are an accredited investor if you earned $200,000+ in each of the last two years ($300,000+ jointly with a spouse) with the same expectation this year, or if your net worth exceeds $1 million excluding your primary residence.
Certain professional licenses (Series 7, 65, 82) also qualify. Accreditation is the SEC's line for who can access private securities offerings without the disclosure protections of public markets.
Why do private real estate deals require accreditation?
Private offerings are exempt from public-market registration, and the SEC limits most of them to investors it deems able to bear the risk — that's what the income and net-worth tests approximate.
Deals offered under Rule 506(c) may advertise publicly but must verify every investor's accredited status with documentation. Deals under 506(b) can't advertise, but may include up to 35 sophisticated non-accredited investors with a pre-existing sponsor relationship.
How is accreditation verified?
For 506(c) offerings, sponsors verify through tax returns, W-2s, brokerage statements, or a letter from your CPA or attorney — self-certification isn't enough.
For 506(b) offerings, a questionnaire and the sponsor's reasonable belief generally suffice. Verification is per-offering, not a card you carry.
What if you don't qualify yet?
You can still build toward private deals: public REITs have no accreditation requirement, and building a relationship with sponsors now positions you for 506(b) opportunities later.
Many high-earning professionals cross the income threshold within a few years — the better question is whether your capital, liquidity, and knowledge are ready when you do.
Frequently asked questions
Does my home count toward the $1 million net-worth test?
No — the accredited investor net-worth test explicitly excludes the value of your primary residence.
Is there an official accredited investor certificate?
No central registry or certificate exists; accreditation is verified per offering by the sponsor or a third-party service.