Accredited investor requirements (overview)
Many private real estate offerings rely on exemptions from securities registration. Under Rule 506(b) of Regulation D, issuers typically sell only to accredited investors (and up to 35 non-accredited sophisticated investors in some cases). This article is a general overview; rules change and you should verify status with qualified professionals.
Common accredited categories (conceptual)
- Income test: Annual income above a threshold for the last two years with expectation of the same in the current year (amounts are defined by SEC rules).
- Net worth test: Net worth over $1 million excluding primary residence (subject to current rule text).
- Professional certifications: Certain holders of Series 7, 65, or 82 (as specified by SEC).
- Entity investors: Entities meeting asset thresholds or composed of accredited owners.
Why it matters
Accredited investor standards are intended to ensure participants have the financial capacity or sophistication to evaluate private, illiquid investments.
Verification
For an actual offering, Stoneforge (or its service providers) will collect documentation to verify status in accordance with the subscription process. This website does not constitute verification.