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?
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.
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.
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.
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