what is an accredited investor?

As you are getting started real estate investing, you might be seeing offerings for passive investment.

Some of these investment offerings require their investors be accredited. So what does that mean?

The full requirements are linked here:

Electronic Code of Federal Regulations

For an individual to be considered an accredited investor:

  • their net worth (not counting their primary residence) is $1,000,000 + OR

  • they make $200,000/year in gross income in the past 2 years OR

  • they make $300,000/year in gross income filing jointly with a spouse in the past 2 years

These rules exist to help protect investors who could be “duped” by investment offerings, hoping that investing in these types of offerings wouldn’t be catastrophic for the average individual.

It is still very possible to invest in real estate without being accredited, but certain offerings are only available to those individuals.

Case Study - Riverwood New Construction

New Construction in Riverwood Neighborhood of Breckenridge, CO

Finished Home

Finished Home

Vacant Lot with Trees and Boulders

Vacant Lot with Trees and Boulders

Basic Info

  • Purchase Price Land $487000 in October 2017

  • Sold Newly Constructed Home for $2,995,000 in January 2019

Market Value of Property