How Can I Tell If I'm an Accredited Investor?
- Keith Miller
- Jan 19
- 2 min read
Many investors ask this early in the process, and for good reason. U.S. securities laws limit who can invest in certain private offerings, including most real estate syndications.
The term you will hear is “accredited investor.”
This post explains what that means and how to self-identify in a few minutes.
What does “accredited investor” mean?
An accredited investor is an individual or entity that meets specific financial thresholds set by the U.S. Securities and Exchange Commission. The goal is simple. These rules are designed to ensure that investors participating in private offerings have the financial capacity to understand and absorb risk.
Accredited status is not about experience or intelligence. It is based on income, net worth, or certain professional credentials.
The two most common ways individuals qualify
Most individuals qualify in one of these two ways:
Income test
You earned more than $200,000 in each of the last two years, or $300,000 combined with a spouse or spouse equivalent.
You reasonably expect to meet the same income level in the current year.
Net worth test
Your net worth exceeds $1 million, either individually or with a spouse or spouse equivalent.
Your primary residence is not included in this calculation.
If you meet either test, you are considered an accredited investor.
Other ways someone may qualify
Some investors qualify through professional credentials rather than income or net worth. This includes holders of certain financial licenses, such as Series 7, Series 65, or Series 82, as well as knowledgeable employees of private funds.
Certain entities, such as trusts, family offices, and companies with sufficient assets, may also qualify under separate rules.
Do I need proof right away?
You do not to get the process started. When you sign up at Upslope's Investor Portal, after you sign documents it will prompt you to start the third party verification of whether you are accredited or not. That process is standard and handled carefully to protect privacy.
Why this matters
Accredited investor rules are not a judgment. They are a regulatory framework. Understanding where you fall helps determine which opportunities you can legally participate in and avoids wasted time on both sides.
If you are unsure, a CPA or financial advisor can usually confirm your status quickly.
Sources
U.S. Securities and Exchange Commission. Accredited Investor Definition https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/accredited-investors
SEC Small Business Compliance Guide. Net Worth Standard https://www.sec.gov/resources-small-businesses/small-business-compliance-guides/accredited-investor-net-worth-standard
Disclaimer
This article is for informational purposes only and does not constitute investment, tax, or legal advice. Always consult with professional advisors before making investment decisions.
