Non-accredited investors can build real estate wealth through rental properties, fix-and-flips, private lending, and Rule 506(b) syndications that don't require SEC accreditation. You need $200k annual income for two years or $1M net worth to be accredited, but an August 2020 SEC amendment opened additional qualification routes for those who don't meet those thresholds.
Hey everybody. Flippin Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to our podcast which is.
Called Freedom through Passive Income.
And today, today's episode is actually talking about non accredited investors and options on how they have. What options they have in investing in real estate.
That's right.
So we did another episode on accredited investors and real quickly, the definition of an accredited investor is an individual that who makes $200,000 for the last two years and expecting to make the same the next year or a married couple that made $300,000 the previous two years and is expecting to make the same the next year or not. And or they have a million dollars in net worth minus their primary residence. So if the residence was 500,000, they need a net worth of at least $1.5 million. And again, that's either or. Now today we're going to be talking about non accredited investors and what their options are.
Yeah. And I do want to mention too, on that other episode where we talked about accredited investors, there was an amendment that came out. When was it?
It was August 26, 2020. It was during COVID They didn't have anything else to do, so they decided to make an amendment.
You've got your funny. And it gave quite a few other. Not quite a few. I think there was a total of five. We talked about four.
Right.
So that's something. Definitely. Go back and listen to it. Because there are ways for you to qualify as an accredited investor even if you don't make those two income requirements that you just mentioned.
Right.
And the reason that's important is because the world is opened up to you as an accredited investor to have. Because the SEC feels like you have the knowledge and experience and you're savvy enough to be able to make, you know, good decisions and take risks.
Right.
So, but that's one of the things where we have a lot of conversations where non accredited investors are saying, well, I'm not accredited, so I can't invest. Well, that's not true.
That's right.
There are many, many ways that you can invest. We're going to talk about four of the ways that you invest here because they happen to be the ways that we invest ourselves. And a lot of the people that we're surrounded with and that come to us invest with us. So the first one is rental properties. Obviously you do not have to be an accredited investor to invest in rental properties property. So you can be investing in turnkey properties and turnkey properties are done for you.
Yep.
Right. Everything if you're busy. You like things done for you. I just want it rehabbed. I want it ready, I want the tenant in there and I want it cash.
Just mail me my check.
Yep, that's right. You can also Burr Properties. Sorry, you brought in another funny.
Thank you. Flip.
So those are opportunities where you're going to buy, rehab, rent, refinance, repeat, repeat. So you don't have to be accredited to do things like that. Certainly don't have to be credit accredited to buy as is properties that are just good. So buying property in general don't have to be accredited. Number two, fix and flips. If you're an active investor, because we talked about this on another episode as well. The difference between active investing and passive investing and fix and flips, turnkeys and syndications, I think is what we went through on that episode.
Right.
Then you can do that. You can. You can buy a property, you can rehab it yourself, you can then sell it, or if you want to keep it as a rental, you can do that too. So fix and flips. You don't have to be accredited. Private money lending. This is the biggest one that I do. I'm on podcasts all the time. And on there we actually say you do not have to be accredited to be in. The phone calls just come pouring in because they're like, yes. So private money lending. If you want to be a private money lender, you don't have to be accredited. And then the fourth one I want to talk about is private real estate and syndications. When I talk about private real estate and syndications, you're going to understand it a little bit better because we talked about the public ones on the other episode.
Right.
506C is a public and you can advertise it, but you have to be accredited.
Right.
To be able to invest in those. A.506B, we are not allowed to advertise. It has to be a private opportunity to two people that we already know. So you and I have had to have had a relationship for like 30 days or had three conversations or just had meaningful, they say, substantive.
Right.
You know, a relationship so that we can actually present this opportunity to you.
Right. And what I like to say is, and I heard this just a few months ago, is it's 506B as in buddy. Yes, because you're our buddy. Come on in. You can invest in this one because you're our buddy.
That's right. So if you are not accredited or you're working towards being accredited, my advice is every single End of these podcasts, we tell you about our Facebook group. We tell you about that Facebook group so that you can get inside, you can start having that conversation with us, you can start having that relationship. You can ask questions to us, to our team, everybody's in there to be able to answer all of your questions. And 30 days after you're in that group, you're invited to our deal room. What does that deal room do? It's our private room that allows us to show you opportunities that are 506B because now you are our buddy because, because we followed some steps in order to invite you to that room so that we created that substantive relationship. So I think that's really, really important. And not a lot of people know that this is even is possible. And so I want to like shout it from the rooftops. I don't know how many times we're going to refer to like this episode in particular and the accredited one so people can get more knowledgeable about when they can invest and how they can invest. So if you ever see anything that is a 506B as in buddy.
That's right.
Then if you're not accredited, you can be an investor in one of those. As long as we have a substantive relationship, jump on the phone with us, get in our Facebook group. Anyhow, any way that you can contact us, we'll start that clock and conversation for us to be able to present offerings.
Awesome. Well, that's how a non accredited person can invest in real estate. And if you have any other questions, make sure you check out our Facebook group. Right up top here.
Facebook.com group Freedom Through Passive Income.
And if you're one of the few that are not on Facebook, right down here is our website, which is Freedom Capital Investments. Make sure you love like comment, review. Yes, review. Give us questions, you know, let us know how we're doing. But again, make sure you get in there. Love like do all that stuff. But we always end all of our episodes with invest Smart, Live happy. Bye everybody. Nothing in the show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit or loss.
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