In commercial multifamily real estate, there’s a language that is spoken when you are connecting with brokers, property managers and other investors in the profession. To avoid sounding like a novice, an investor must be fluent with the real estate terminology to be taken seriously. Let’s take a minute to breakdown one of those terms.
Accredited investor is assumed to have the financial expertise to be able to handle complex and potentially risky investment transactions. Someone that can invest in securities (example: investing in a multifamily syndication as a limited partner) by satisfying the net worth requirements provided by the Securities and Exchanges Commission (SEC).
- Earned annual income of $200,000 or $300,000 for joint filing with your spouse for the last two years. Reasonably expects the same for the current year.
OR
- Has a net worth of over $1 million, either alone or together with a spouse (excluding the value of the primary residence).
By learning these concepts and terms, you’re separating yourself from the novice investor looking to be more active than passive. Here’s where you can learn more multifamily investing terms.
Click here for more information on the on the Securities and Exchange Commission’s (SEC) website.