Accredited Investor

Definition

Someone meeting SEC wealth requirements ($200,000+ annual income or $1M+ net worth) eligible for private real estate securities—basically the rich kids' club.

Example Usage

The private real estate fund is only available to accredited investors, so we qualify with our net worth.

Origin

Defined by SEC in 1982 to regulate private offerings

Fun Fact

Being an accredited investor gives you access to investments with higher returns but also higher risks, because the SEC assumes you can afford to lose money.

Source: SEC Regulation D Standards

Related Terms

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concessions

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cash on cash return

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appurtenant

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Fair Market Value

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