Accredited Investor Qualifications: How To Become An Accredited Investor Without High Income Or Net Worth

Since asset-based lending involves lending money secured by assets, some protection level assumes the investment is accurately valued.

Why Accredited Investor Restrictions Exist

Since many unscrupulous promoters take advantage of investors promising high returns, the SEC put restrictions on investment in such opportunities.

The original accredited investor qualifications was based on high income and net worth. 

What Are the Qualifications To Be An Accredited Investor

The SEC has three main criteria to validate the accredited investor qualifications 1. Financial 2. Knowledge 3. Entities

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

Accredited Investor Qualifications Based On Finances

You can meet the Financial qualifications for accredited investor definition based on either the income level or net worth.

Accredited Investor Qualifications Based On Knowledge

Any individual can meet the accredited investor qualifications by having specific professional certifications, designations, or other credentials issued by an accredited educational institution.

Accredited Investor Qualifications Based On Entities The entity-based criteria for accredited investor definition do not seem relevant to us except for the “knowledgeable employees of private funds.”

How To Become An Accredited Investor Without High Income Or Net Worth

If you do not satisfy the traditional income or net worth accredited investor qualifications, the knowledge route is the best alternative.

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