As a high-net-worth individual or someone with a stable income, you may have heard of the term “accredited investor.” Being an accredited investor opens up a world of investment opportunities that are not available to the general public. These investment options are typically less regulated and offer higher returns than traditional investments available to all traders.
In this article, we will explore what it means to be an accredited investor and some of the best investment opportunities available to them. Please note that this article only covers the best 3, if you want a more comprehensive list, read this investment opportunities for accredited investors article.
So, whether you’re already an accredited investor or looking to become one, keep reading to learn more about the exciting world of accredited investor opportunities.
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What Is An Accredited Investor?
So, what exactly is an accredited investor? This is an important question to answer before exploring investment opportunities that are exclusive to accredited investors. Essentially, an accredited investor is an individual or entity that has privileged access to trading securities due to their wealth, experience, or other qualifications.
This exclusive access means that they don’t have the same need for regulatory disclosure filings that offer protection for regular investors.
To qualify as an accredited investor, an individual must meet at least one requirement regarding net worth, asset size, income, governance, or professional investment experience.
For example, in the United States, the Securities and Exchange Commission (SEC) defines an accredited investor as someone with a gross income (or joint income with their spouse) exceeding $200,000 (or $300,000 jointly) in each of the two most recent years, with a reasonable expectation of the same level of
For example, in the United States, the Securities and Exchange Commission (SEC) defines an accredited investor as someone with a gross income (or joint income with their spouse) exceeding $200,000 (or $300,000 jointly) in each of the two most recent years, with a reasonable expectation of the same level of income for the current year.
An individual can also qualify as an accredited investor if they have a net worth (or joint net worth with their spouse) of at least $1 million, excluding the value of their primary residence.
Banks, insurance companies, brokers, trusts, and other entities can also be accredited investors if they meet certain requirements.
Basically, an accredited investor is someone who has a level of financial security that allows them to invest in riskier and less transparent investments that are not available to the general public.
Best Accredited Investor Opportunities: The Top 3
First National Realty Partners
First National Realty Partners (FNRP) is a fast growing vertically integrated commercial real estate investment firm that focuses on big name, grocery anchored commercial real estate. It is the leader in this niche. They leverage relationships with top tier national brand tenants, including Kroger, Whole Foods, and walmart.
They bring accredited investors exclusive access to institutional quality deals.
FNRP utilizes something called the Dragnet Acquisitions Model, which involves extensive due diligence, and filters through thousands of deals to choose only the best that they believe offer the highest returns for the lowest risk.
Unlike traditional private equity sponsors, FNRP’s entire investment cycle is 100% in house and not outsourced.
While the high minimum investment of $50,000 is higher than some other options, it has helped thousands of investors increase their net worth and diversify their portfolios against market volatility through deals that yield steady cash flow.
If you are interested in learning more, read this comprehensive First National Realty Partners review.
Farmtogether
Farmtogether is an investment platform that provides investors with the opportunity to invest in farmland, an asset class that is often overlooked but can provide stable returns. The platform operates through LLCs managed by Farmtogether and investors can invest in shares of these entities.
Cash distributions and gains from land appreciation can be received by investors through quarterly or annual payments, depending on the farmland’s harvest schedule and lease agreement with the farmer.
Holding farmland properties long-term can result in favorable capital gains tax treatment, making it a smart investment option for those looking to diversify their portfolios.
Farmtogether ‘s team carefully sifts through hundreds of opportunities to select the best farmland investments. Opportunities vary by type, expected return, and location, giving investors a wide variety of options to choose from.
With a minimum investment of just $10,000, accredited investors can get started on the platform. Investors can choose between crowdfunded offerings for fractional shares, custom offerings for sole ownership of a property, or the Sustainable Farmland Fund for instant diversification with a single investment.
The Sustainable Farmland Fund requires a minimum investment of $100k and grants access to a diverse farmland portfolio.
Overall, with the potential for capital appreciation, routine dividends, and several investment options, Farmtogether is an intriguing platform for accredited investors interested in agriculture and looking to diversify their portfolios.
Crowdstreet
Crowdstreet is a real estate investment platform exclusively available to accredited investors seeking to invest in commercial real estate for long periods. The platform offers access to a range of private equity investments, single asset projects, and funds.
It has become one of the fastest growing crowdfunded real estate opportunities. The minimum investment on Crowdstreet is $25,000, which is relatively high compared to platforms that allow non-accredited investors with lower minimum investment requirements. But for accredited investors, the $25,000 minimum may not be a significant hurdle.
Depending on the type of project chosen, investors on Crowdstreet may receive a return immediately through quarterly dividends on commercial rental properties or through a project that takes a few years to provide returns.
Although Crowdstreet has a thorough vetting process for its projects, it is important for investors to do their own due diligence as projects may vary in terms of success, which is common in the real estate industry.
Crowdstreet offers investors the ability to earn passive income and capital appreciation on real estate through fractional ownership with a long-term investment. The platform also features an intuitive website and excellent educational resources for investors seeking to learn more about real estate investing.
To take a deeper dive into the investment opportunities that Crowdstreet presents, read this Crowdstreet Review.
Which Accredited Investor Opportunities Are Best For Me?
Hopefully after reading this article, you have a better understanding of a few of the best investment options for accredited investors. Obtaining accredited investor status offers a range of opportunities.
Each investment option comes with its own set of risks and rewards. It’s important to carefully consider your investment goals and risk tolerance before making any commitments, and to consult with a financial advisor if you’re unsure about which investments are right for you.
Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.
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