Knightsbridge Ventures
03 November 2017

What are the Requirements for an Accredited Investor in the United States?

Getting involved in the American property investment market is something that a lot of people are eager to get into. Although the market has been slow to recover since the 2008 financial crisis, it’s largely recovered the losses in the property market and is an exciting prospect for overseas buyers. But if you want to get into the big leagues, you need to be an accredited investor.

The legal definition of an accredited investor is that you need to have a net worth of at least 1 Million Dollars: this can come from assets or your yearly income, with 200,000 Dollars per annum being the lowest level. Other areas can include the following:

  1. “A bank, insurance company, registered investment company, business development company, or small business investment company;
  2. An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
  3. A charitable organization, corporation, or partnership with assets exceeding $5 million;
  4. A director, executive officer, or general partner of the company selling the securities;
  5. A business in which all the equity owners are accredited investors;
  6. A natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase, or has assets under management of $1 million or above, excluding the value of the individual's primary residence;
  7. A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;
  8. A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes."

If you meet one of these requirements, you have access to some of the most lucrative, yet high-risk ventures in the property market: things like private equity, private placements, hedge funds, venture capital, and equity crowd funding are at your fingertips.

Knightsbridge Ventures are a new property investment company bringing fresh new investors into Europe and overseas.