Are you an accredited investor wondering where to find the best investment opportunities? Accredited investors have the benefit of being able to invest in certain assets and alternative investments that aren’t available to regular investors. These opportunities often provide higher returns and greater passive income potential than traditional investments.
In this article, we’ll explore the meaning of accredited investor status and share four of the top investment opportunities available exclusively to accredited investors. Whether you’re looking to diversify your portfolio or grow your wealth, keep reading to discover the best investment opportunities for accredited investors.
Please note that we only cover the top 4, for a more thorough list check out this accredited investor opportunities article.
What Is an Accredited Investor?
An accredited investor is a type of investor that has privileged access to trading securities due to their wealth and/or experience. Accredited investors can be individuals or business entities such as banks, brokers, insurance companies, and trusts.
To be considered an accredited investor, an individual must meet certain requirements regarding net worth, asset size, income, governance, or professional investment experience.
These requirements are set by the US Securities and Exchange Commission (SEC), which states that an individual must have a net worth over $1 million, excluding their primary residence, or an income over $200,000 (individually) or $300,000 (with a spouse or partner) in each of the prior two years and an expectation of the same for the current year.
Some investment platforms may require documentation proving accredited investor status rather than just self-certification.
Accredited Investor Opportunities: The Top 4
First National Realty Partners
First National Realty Partners is a real estate investment opportunity that offers a great investment opportunity exclusively for accredited investors. With a focus on grocery anchored commercial real estate, First National Realty Partners is one of the fastest growing vertically integrated commercial real estate (CRE) investment firms in the United States.
They leverage relationships with top tier national brand tenants such as Kroger, Walmart, and Whole Foods to offer investors access to institutional quality CRE deals. Unlike most equity crowdfunding platforms, First National Realty Partners offer private placements that only an accredited investor can access.
The team at First National Realty Partners filter through thousands of deals to select only a handful of deals they believe will outperform their peers. This is an excellent investment opportunity for accredited investors who are looking to increase their net worth and diversify their portfolios against market volatility, through deals that yield steady cash flow.
The minimum investment is $50,000. Investors have the ability to pick the deals that best align with their investment needs and build their own portfolio. To learn more, read this First National Realty Partners review.
CrowdStreet
CrowdStreet is a platform that provides access to real estate projects for accredited investors. They offer both private equity investments and single asset projects and funds.
CrowdStreet is known for its low fees, with an annual management fee between 0.5% and 1% of the portfolio value. This is because other costs are paid by real estate developers, rather than being passed on to investors.
The CrowdStreet Marketplace allows investors to select properties to invest in, and each property is put through a rigorous analysis process. Only 5% of deals investigated are offered on the marketplace to investors.
For investors who prefer a managed investment, CrowdStreet offers its Blended Portfolio. This investment vehicle is a fund that comprises several property holdings from the platform that have been handpicked specifically for the fund.
The drawback of investing with CrowdStreet is that the investment is a bit illiquid. The account minimum is $25,000, which is high for some investors. To learn more about CrowdStreet, have a look at this thorough CrowdStreet review.
Equity Multiple
EquityMultiple is a popular real estate crowdfunding platform exclusive to accredited investors. It offers a lower initial investment requirement (starting at $5,000) and lower fees (0.5% to 1.5%) than most other platforms.
EquityMultiple investments favor debt, including senior and mezzanine debt, but they also offer preferred common equity and unique investment opportunities such as investments in 1031 exchanges and opportunity zones.
EquityMultiple has an investment option for investors who prefer less risky investments. They offer an evergreen fund that solely invests in short term notes. While the returns on this fund may be lower than other investment options, it provides a much safer option due to the shorter durations.
EquityMultiple’s investments lack liquidity as there is no secondary market for early liquidation. It may be possible to exit a position by selling shares to another investor through a private transaction.
Overall, EquityMultiple is backed by Mission Capital Advisors and provides a wide variety of asset classes and offerings, making it a great option for investors looking for commercial real estate opportunities. To read more about EquityMultiple, read this in-depth Equity Multiple review.
RealtyMogul
Finally, let’s take a look at RealtyMogul, an online real estate crowdfunding marketplace for real estate investing. They offer private placements for accredited investors and two private REITs for non-accredited investors.
Investors can choose to invest through fractional ownership in an individual property or group of properties. For REIT opportunities, they offer the Income REIT, which focuses on income generating assets, and the Apartment Growth REIT, which offers a balanced approach between income and growth.
RealtyMogul charges a 1% annual management fee for their Income REIT and a 1.25% annual management fee for their Apartment Growth REIT. The minimum investment required to start is $5,000, and all investors can participate in this platform. To learn more about RealtyMogul and its offerings, go to this RealtyMogul review.
What Is the Best Opportunity for Accredited Investors?
As an accredited investor, you have access to a wide range of investment opportunities that may not be available to other investors. However, it’s important to remember that these opportunities often come with high risks, and it’s crucial to only invest in ventures that you understand and that align with your investment goals and risk tolerance.
The best investment opportunity for you as an accredited investor will depend on various factors, including the type of asset, rate of return, risk level, and your personal preferences.
Always make sure to fully understand the investment before committing any funds and consult with a financial advisor if necessary. By being diligent and selective with your investments, you can potentially achieve higher returns and diversify your portfolio beyond traditional investments.
