Suppose you're thinking about becoming an accredited investor to secure financing for a major project or even to invest in the stock market. In that case, there are some things that you should consider first. Check out this page to know what it takes to become an accredited investor and its advantages!

The term "accredited investor" means someone with an annual income of $200,000.00 or a net worth of over $1 million. Becoming one can be attractive because they are eligible to invest in stocks and other securities without any limitations imposed by federal law.


You must be honest and have never been convicted of a felony or serious crime. A person who is disqualified in this way cannot purchase securities from the Securities and Exchange Commission (SEC).

Also, if you are in business, even if you're an incorporated company with other investors, you must not have had a net loss in the last two years. So, if a company had a net loss because it could not turn enough profit in its business, it would be disqualified from becoming an accredited investor.

How to become an accredited investor?

Getting into the accredited investor race is a long process. To become an accredited investor, you must submit a form detailing information about yourself and your finances, including what types of real estate you own and how much debt you owe. Physical records such as bank statements and verifying tax forms are also necessary to confirm that you meet the outlined financial requirement.

You can become an accredited investor by investing in real estate projects already approved by other accredited investors. Several syndicates offer a higher return on investment than most opportunities on the market today.

So, what assets can an accredited investor buy?

Check out this page for examples of projects that accredited investors are currently financing to get an idea of how you can invest:
  • Commercial real estate funds- Invest in commercial buildings and co-operatives listed on the NASDAQ. These buildings usually offer high returns for their investors.
  • Crowdfunding (only assets)- Crowdfunding is a new type of investing where the investor buys a piece of the deal. For instance, you may invest in a movie about to hit theatres or a new consumer product company that hasn't released any products.
  • Private equity- including equity in a publicly traded company (or stock) and more speculative investments through private transactions (including non-publicly traded stocks and bonds).
  • Hedge funds and venture capital- are private investment firms that buy and sell securities in an attempt to make money for their investors.
  • Crowdfunded real estate- Crowdfunding has also been used to raise commercial real estate investments, including shopping centres, offices, apartments, and other types of buildings. Individual investors can own these projects through direct purchases or through privately-funded schemes (called REITs) in which the properties are then put up for sale to the general public.
Venture debt is when a company borrows money on its behalf to launch new ventures or expand those already underway.


Becoming an accredited investor can be an excellent way to make high returns on your investments, but you should consider all the details before taking the next step.