What It Means to Be an Accredited Investor

What It Means to Be an Accredited Investor (And Why It Matters for Your Wealth)

Once you start looking beyond stocks and into private investments—especially passive real estate deals—you’re going to hear the term “accredited investor” everywhere.

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It’s a critical distinction and it unlocks access to a world of investment opportunities you won’t find on Wall Street.

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If you’re serious about building wealth through real estate syndications and private offerings, you need to know exactly where you stand.

Let’s break it down.

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 What Is an Accredited Investor?

An accredited investor is someone who meets certain income or net worth thresholds, proving (in the eyes of the SEC) that they can handle the risks of private investments.

You’re considered accredited if you meet one of the following:

•  Income Test:

  • Earned $200,000+ as an individual (or $300,000+ jointly with a spouse) in each of the past two years, and

  • Have a reasonable expectation of maintaining that income this year.

OR

•  Net Worth Test:

  • Have a net worth over $1 million, excluding your primary residence.

There is no formal application, no government certification you self-certify or verify when needed for specific investments.

 Real-World Examples: Are You Accredited?

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 Example 1: John’s Situation

• Income: John just got a raise to $200K but hasn’t earned that much for the past two years.

• Net Worth: $700K in retirement accounts + $350K in savings – $100K student loan debt = $950K net worth.

Result: John is not accredited yet. He’s close, but not quite across the finish line.

 Example 2: John & Julie’s Situation

• Income: John earns $285K; Julie earns $0. Joint income = $285K (below the $300K joint income requirement).

• Net Worth:

  • $500K rental property equity

  • $250K savings

  • $600K retirement accounts

  • $250K inheritance
    → Total net worth = $1.4M (excluding primary home)

Result: John and Julie are accredited based on their net worth.

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 Why Does Being Accredited Matter?

Being accredited opens doors, big ones.

• Access to exclusive private investments (like commercial real estate syndications and private equity deals)

• Opportunities that are often higher-return, lower-volatility, and more tax-advantaged than public markets

• Freedom to invest outside traditional stock market channels

The SEC believes that accredited investors are financially sophisticated enough to understand the risks without needing the same protections as everyday retail investors.

In plain English?
If you’re accredited, you’re in the club.

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 But What If You’re Not Accredited Yet?

No stress. Plenty of solid real estate investment opportunities still exist for sophisticated investors, especially through certain 506(b) real estate syndications (the kind that aren’t publicly advertised).

At Trust 2 Capital, we occasionally offer investments for non-accredited investors, but you need to build a relationship with us first.

If you’re actively working toward accreditation (growing your income, building your net worth), it’s smart to start networking now.

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 Ready to Access Passive Real Estate Opportunities?

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If you’re accredited you owe it to yourself to explore the opportunities reserved for investors like you.

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Join the Trust 2 Capital Investor Club and get access to exclusive, private syndication deals designed to help you grow wealth, cash flow, and freedom.

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Or schedule a call to ask your questions about Passive Investing to learn how syndications work.

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