Why are some properties only for accredited?

6 Replies

I've been looking at properties all morning and I've found a few that are only being offered to accredited investors.

I'm curious what the reasoning is behind offering a property to only accredited investors, versus having it be offered to everyone?

I guess I am confused. The one listing states "This investment offering provides accredited investors the opportunity to acquire..."

I understand that as it's only being offered to individuals who meet those requirements.

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Offerings are often limited to accredited investors due to the stricter regulations when dealing with non-accredited investors. Accredited investors are considered sophisticated investors and more knowledgeable when it comes to handling money, which makes it easier and less costly for the company to offer investments to them. There are currently a few companies out there that do have offerings available to non-accredited investors, though. The regulations are beginning to ease up, and I imagine this trend will continue in the near future. 

Very interesting. It does make a lot of sense now. This reminds me of the new investment laws for startups, and how very soon anyone can invest in startups.