As an investor, you must be interested in exploring new and unique investment opportunities that are not accessible to the general public. Accredited investors have the benefit of being able to invest in certain assets and alternative investments that are not available to non-accredited investors.
But what exactly is an accredited investor, and what opportunities are available to them? In this article, we’ll look behind the curtains, into the world of accredited investors. We will also explore some of the top investment opportunities for those who qualify. Whether you’re a seasoned investor or just getting started, there should be some valuable insights for you to come.
What Is An Accredited Investor?
An accredited investor is a privileged individual or business entity with access to exclusive investment opportunities. But who exactly qualifies as an accredited investor? Well, the requirements for accreditation include a high net worth, substantial income, professional investment experience, or governance standing.
For income requirements, an individual must have had gross income exceeding $200,000 (or $300,000 for joint income) in each of the two most recent years, with an expectation that this income level is sustainable for the current year.
An individual can also qualify, with a net worth (or joint net worth) greater than $1,000,000. Their primary residence does not count towards the 1,000,000 net worth requirement.
This exclusive status offers numerous benefits, including access to unregistered securities that aren’t available to the public. The investment opportunities available to accredited investors range from traditional assets like stocks and bonds to alternative investments like commodities and real estate. As with any investment, there are potential downsides to consider.
So, if you meet the criteria to be an accredited investor, what investment opportunities are available to you? Keep reading to discover some of the best options for accredited investors.
Types of Investment Opportunities For Accredited Investors
As mentioned previously, accredited investors have the unique advantage of gaining access to a diverse range of investment opportunities that may not be available to non-accredited investors.
These opportunities are designed for accredited investors to leverage their financial stability and experience to earn greater returns on investment. Accredited investors can choose from various types of investments, including:
- Real Estate Syndication: A process by which a group of investors pool their funds to buy property that is otherwise unaffordable individually. The syndicator handles the property management and contracts, while investors enjoy passive income.
- Convertible Investments: Financial securities that convert into common stock at a predetermined price. Accredited investors use these investments to back businesses with long-term growth potential.
- REITs: Real estate investment trusts that pool investors’ funds to purchase and manage different types of properties, providing investors with income without the responsibility of day-to-day property management.
- Venture Capital: A form of equity financing for startups and small businesses in exchange for company ownership.
- Hedge Funds: Professionally managed investment funds with fewer regulatory restrictions, offering exclusive opportunities in complex asset classes and strategies.
- Private Equity Real Estate: Investing in privately managed funds that invest in various real estate offerings, from undeveloped land to luxury high-rises.
- Hard Money Loans: Short-term loans provided by private companies that accept an asset, such as property, as collateral. These loans are ideal for borrowers who need fast approval or have had a mortgage or loan application denied.
Accredited Investor Opportunities
Within each type of investment opportunities for accredited investors we mentioned in the previous section, there are hundreds or thousands of offerings. We can’t cover all of them here, so we will take a look at a couple of our favorites.
First National Realty Partners
If you’re an accredited investor looking for an alternative investment option in commercial real estate, then First National Realty Partners might be worth considering. This private equity firm offers a unique spin on investment in retail commercial properties by using a tenant-centric approach that features nationally-recognized brands as anchors.
With its below replacement cost valuation, investors can expect capital appreciation and quarterly distributions. In addition, First National Realty Partners works with many nationwide corporate heavy weights such as Starbucks, Walmart, and CVS, offering essential services like groceries and pharmacy products.
First National Realty Partners is a vertically integrated company, meaning that its entire deal cycle is run within the company, giving investors more control over their investments. If you’re interested in learning more about First National Realty Partners and its investment opportunities, make sure to read this First National Realty Partners review.
EquityMultiple is an online real estate investment platform that blends traditional real estate investing with crowdfunding. It allows accredited investors to invest in professionally-managed commercial real estate and offers multiple investment opportunities through a single platform.
These opportunities include investing in a pool of commercial properties, co-investing in individual properties, or investing in short-term notes secured by real property.
EquityMultiple’s online platform offers a low minimum investment of $5,000 and allows investors to diversify their portfolio in a “one-stop shop.” The company has returned $240.3 million to investors and offers equity, preferred equity, and senior debt investments.
Read this EquityMultiple review to determine if it’s the best investment option for you.
There are several unique investment opportunities available to accredited investors that are not accessible to the general public. These opportunities can offer higher returns and greater passive income than traditional investments available to all traders.
First National Realty Partners is an excellent option for accredited investors looking for a real estate investment platform that offers quarterly positive cash flow through fractional investment in high-performing commercial real estate properties throughout the country.
EquityMultiple blends crowdfunding with a more traditional real estate investing approach and provides a way to diversify your portfolio with commercial property investments.
Ultimately, the right investment opportunity for you will depend on your individual investment goals and risk tolerance.
If you’re an accredited investor interested in exploring investment opportunities that are not available to the general public, we encourage you to continue your research. If you want to learn about many more investment opportunities for accredited investors, click the link to see a comprehensive list.