An accredited investor is a Securities and Exchange Commission (SEC) classification that requires a U.S. investor meet one of the following, self-reported requirements1 to invest in certain asset classes2:
+ Have a personal net worth of over $1,000,000, excluding your primary residence.
+ Earn an annual income of $200,000 or more if you are filing as Single.
+ Earn an annual income of 300,000 or more if you are filing as Joint.
+ Be investing on behalf of an institution, fund or family office.
1Requirements: Since the JOBS Act was signed in 2012, equity crowdfunding platforms such as RealtyReturns have been preparing for the implementation of Title III, also known as CrowdFunding. In May of 2016, Title III was passed and now allows over 240 million Americans (97% of the U.S population) to invest in private offerings.
2Certain Asset Classes: Accreditation rules restrict non-accredited investors from investing in specific asset classes. This includes Secondary Market Transactions.