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Accredited Investor Definition | Do All Physicians Meet the Accredited Investor Qualifications by SEC?


September 10, 2020

Harsha Moole, M.D., MBBS


Accredited Investor Definition | Who is an Accredited Investor? Do All Physicians Meet the Accredited Investor Qualifications by SEC?

 

“Having a million-dollar net worth doesn’t make you a genius, and having less than a million-dollar net worth doesn’t make you a fool” – Naval Ravikant


Accredited Investor Definition – Who is an Accredited Investor? Do All Physicians Meet the Accredited Investor Qualifications by SEC? Almost all the Real Estate Syndication investments and most of the crowdfunding real estate platforms work only with accredited investors. It is important to make sure you are an accredited investor prior to investing in a syndication investment or a crowdfunding platform. Do all physicians qualify for the accredited investor requirements?


Does Every Physician Qualify as an Accredited Investor?

The Securities and Exchange Commission’s (SEC)’s Requirements 

Note: You must satisfy at least one of the following accredited investor qualifications. Accredited Investor Definition by The Securities and Exchange Commission (SEC) and Accredited Investor Requirements.

  • Investor must have an annual income of $200,000 USD for individual income, for each of the last two years, with expectations of earning the same or higher income this year;
  • Investor must have an annual income of $300,000 USD for joint income, for each of the last two years, with expectations of earning the same or higher income this year; or
  • Investor must have a net worth exceeding $1 million, not counting his/her primary home.

 

Accredited Investor Specifics

Do You Need a Certification to Qualify as an Accredited Investor?

Breaking news: as of September 2020, there is now another way to achieve Accredited Investor status (and it’s surprisingly fast and easy!). If you do not meet the minimum net worth value and other requirements set by SEC, you are still able to become accredited via the Series 65 License. This license will enable you to participate in lucrative private investments such as Real Estate Syndications and take part in crowdfunding real estate platforms without having to meet previously stated SEC requirements.

In exchange for approximately 60 hours of study, no firm sponsor, a 130-question test to be completed in three hours, and $175 worth of fees, the Series 65 License is yours and you can officially call yourself an Accredited Investor. Once you have gone through the procedure and have received your Series 65 License, you will be able to purchase securities which are not legally registered with the SEC. This implies that you are now eligible to participate in venture capital funds, real estate funds, angel investments, and many more lucrative opportunities.

The Series 65 License is an exam and securities license administered by the Financial Industry Regulatory Authority (FINRA). As of writing, this license is now required for individuals who act as investment advisers in the United States. Wondering what to expect? The exam you need to accomplish for your Series 65 License entails knowledge on economic factors and general business information, investment vehicle characteristics, client investment recommendations, strategies, laws, guidelines, and other pertinent regulations. Similar to the written exam you undertake when you apply for a driver’s license, you must answer at least 94 questions correctly out of the 130 questions provided. You are given three hours to complete the test. Because of the current pandemic situation, investors are able to take the said exam online, until further notice.

This might seem a lot tedious than usual but trust us, securing accreditation status will boost your journey as an investor immensely. Being an accredited investor will surely open up a lot more lucrative opportunities for your benefit. We also suggest consulting your CPA or attorney on the best way to go about this new procedure.

 

Accredited Investor Opportunities

  • According to the Medscape Physician Compensation Report 2018, the average overall physician salary including primary care and specialties is $299,000 USD. PCPs earn $223,000 USD and specialists earn $329,000 USD annually. 
  • Based on this information, we may generalize that most physicians can indeed pass the accredited investor requirements. 
  • That being said, some physicians may not meet the accredited investor requirements. These are a few examples: physicians working part-time, physicians working in a major hospital in downtown in an academic setting, and etc. 
  • Long story short, just being a physician does not qualify you for the accredited investor requirements until you meet the above-mentioned financial criteria laid out by the SEC.

 

If you are an accredited investor, this opens you up to multiple streams of passive investments. These include but are not limited to Real Estate Syndication investments, crowdfunding platforms, and etc. 

Please also refer to this article on why Real Estate Syndications are an ideal investment option for physicians

Here at PhysicianEstate, we welcome all physician entrepreneurs to learn about commercial real estate investments, rental property investments, and wealth generation. We encourage all physicians to eventually become real estate physician investors. We know a great deal about Who – What – Why – How. 

Stay in touch with us by signing up for our newsletter. The newsletter will keep you up to speed on the current real estate investments we are looking at, provide physicians with investment opportunities, and much more.  

Accredited Investor Definition

Legal Disclaimer: This is not investment advice. I am not a legal and/or investment advisor. This is my personal blog, and all information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. These are my views, it is not a production of my employer, nor is it affiliated with any broker/dealer or registered investment advisor. While the information provided is believed to be accurate, it may include errors or inaccuracies. To the maximum extent permitted by law, PhysicianEstate disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. You should consult with an attorney or other professional to determine what may be best for your individual needs. Your use of the information on the website or materials linked from the Web is at your own risk. 

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Authored by Harsha Moole, M.D., MBBS

Hey there! I hope you enjoyed reading this blog. PhysicianEstate is my brain child and passion project. I run this platform to empower entrepreneurially motivated physicians to make financially educated investment decisions and discuss asset protection strategies. Lots of important but free content here and here! If you have any questions or if you are interested in partnering with me, let’s connect! hmoole@physicianestate.com

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