Capstone Capital Partners, LLC | Capstone Fund, LLC

What Is An Accredited Investor?

What Is An Accredited Investor?

An accredited investor by definition is an individual entity that can make certain investments not considered as registered with the SEC. An accredited investor is, by nature of current financial profile, to have the financial understanding to evaluate a potential investment without the offering having to provide extensive disclosures and security registration. This is a section of the Securities Act of 1933 which requires a company that offers or sells securities to register the offering or otherwise find an exemption from the registration requirements. The accredited investor has this special status. Accredited investor status can include not only individuals but banks and corporations with more than $5 million in assets.

An accredited investor isn’t something such as a license or a legal authority bequeathed upon by a government or regulatory agency yet the verified status of certain aspects of an individual personal financial profile. The accredited investor must:

Have an income of at least $200,000 year or $300,000 together with a spouse for each of the previous two years along with an expectation of those amounts continuing well into the future. Or, the accredited investor could have a net worth of more than $1 million, not including the value of a primary residence. Further, in 2013 the SEC removed a ban on advertisements offered to accredited investors in multiple formats including print and online.

These changes have paved the way for investors to finance private transactions that would otherwise face an uphill battle finding financing. We understand this dynamic and one of the reasons why our opportunities are for those considered accredited investors. We find real estate opportunities that provide secured returns to our investor clients, paid monthly, to acquire and rehabilitate investment real estate, both residential and commercial in nature.


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