Funding
What is an “Accredited Investor” and Why Does It Matter?
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(NOTE: What it's like to write a $1,000,000 check for a sweet piece of undervalued real estate … even if your bank account is overdrawn and you owe the local lawn boy $20? This special report shows you step-by-step.)
If you’re in the private money getting arena at all, one term you should get familiar with is “accredited investor”.
And no matter how you plan on structuring your investment opportunities, you must know whether the people you’re working with are accredited or not and keep this information on record.
Accredited Investor Defined
The term, accredited investors, has to do with securities laws – both federal and state – and making sure you comply with the restrictions that go with setting up a private lending transaction. While these securities laws can vary by area, an accredited investor is defined as:
- A “natural” person whose individual net worth, or joint net worth with spouse, at the time of purchase, exceeds $1M, excluding the value of their primary residence, calculated by subtracting from the estimated FMV of the property the amount of debt secured by the property, up to the estimated FMV of the property;
- A “natural” person with income exceeding…
Patrick Riddle
has been investing in real estate ever since he got the bug in college at Clemson University and - to his parents dismay - dropped out of college to dive full-time into real estate at the age of 22 with a couple friends/partners from school.
The first few deals were rough for them, mainly using their own cash, credit, and hard money loans. But, soon he found out that was a rough and unsustainable way to build a real estate business.
After "on the job" learning through the school of hard knocks at first, he found the key that helped their company get deals done more quickly, with higher profit, less risk, without having to go to banks or use their own cash.
Fast forward to today, their company has closed over 130 real estate transactions and has put over $6 million in private money into their own transactions.
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