Accredited Investor Form
Can anyone tell me where to get an accredited investor form?
There isn't one. You're either accredited or you're not, based on meeting the criteria set by the SEC.
If you're looking for a form to give your investors requesting whether they're accredited, you can make that form. Include several questions asking which specific criteria they meet and how.
Quote from @Taylor L.:
There isn't one. You're either accredited or you're not, based on meeting the criteria set by the SEC.
If you're looking for a form to give your investors requesting whether they're accredited, you can make that form. Include several questions asking which specific criteria they meet and how.
So the only verification is the one you do?
Quote from @Anthony Freeman:
Quote from @Taylor L.:
There isn't one. You're either accredited or you're not, based on meeting the criteria set by the SEC.
If you're looking for a form to give your investors requesting whether they're accredited, you can make that form. Include several questions asking which specific criteria they meet and how.
So the only verification is the one you do?
506b requires self-identification, 506c requires 3rd party verification.
#3 All Forums Contributor
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- Northern Virginia
@Anthony Freeman
As part of your syndication documents your attorney should create an investor questionnaire to be completed by the investor. The subscription agreement also has an accredited investor component to it as well
#2 Real Estate Crowdfunding Contributor
- Investor
- Tampa, FL
Quote from @Anthony Freeman:There is no standard form and the sponsor will provide you with whatever is needed (to comply with their particular situation). If they are running under 506B then they usually have to have a pre-existing relationship with you via a phone call or other means, and then may have a questionnaire for you to fill out. If they are running under 506C, then you will have to provide third-party verification of being accredited via bank statements, tax forms, etc.
Can anyone tell me where to get an accredited investor form?
Quote from @Chris Seveney:
@Anthony Freeman
As part of your syndication documents your attorney should create an investor questionnaire to be completed by the investor. The subscription agreement also has an accredited investor component to it as well
Then your attorney signs an attest ation letter correct?
Quote from @Ian Ippolito:
Quote from @Anthony Freeman:There is no standard form and the sponsor will provide you with whatever is needed (to comply with their particular situation). If they are running under 506B then they usually have to have a pre-existing relationship with you via a phone call or other means, and then may have a questionnaire for you to fill out. If they are running under 506C, then you will have to provide third-party verification of being accredited via bank statements, tax forms, etc.
Can anyone tell me where to get an accredited investor form?
Thank you. Have you completed syndications before. I know many people have not completed them as they are risky.
#4 Multi-Family and Apartment Investing Contributor
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#4 Multi-Family and Apartment Investing Contributor
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@Anthony Freeman, as noted, there are two primary exemptions syndicators use: 506(b) and 506(c), each having their own unique requirements as to what is required to remain in good status of that exemption.
Back to your question: are you a syndicator/GP and want a form to provide your LPs to remain in good standing? Or are you an LP looking at investing in syndications that require you to provide a verification letter?
If the former, you need to talk to your attorney, as this should be part of the document package.
If the latter, you can obtain a letter from verifyinvestor.com, parallelmarkets.com, or from your own CPA, attorney, RIA or Broker Dealer. Of course, you need to actually hit the threshold of being accredited, as these groups won't provide a letter for you if you don't have verifiable backup to show you meet the SEC's definition.
Your CPA should be able to draft up a letter indicating whether or not you are an accredited investor which you can forward to the sponsor.
Quote from @Evan Polaski:
@Anthony Freeman, as noted, there are two primary exemptions syndicators use: 506(b) and 506(c), each having their own unique requirements as to what is required to remain in good status of that exemption.
Back to your question: are you a syndicator/GP and want a form to provide your LPs to remain in good standing? Or are you an LP looking at investing in syndications that require you to provide a verification letter?
If the former, you need to talk to your attorney, as this should be part of the document package.
If the latter, you can obtain a letter from verifyinvestor.com, parallelmarkets.com, or from your own CPA, attorney, RIA or Broker Dealer. Of course, you need to actually hit the threshold of being accredited, as these groups won't provide a letter for you if you don't have verifiable backup to show you meet the SEC's definition.
In your experience it is best to use a lawyer to get all documents vs finding them yourself?
@Anthony Freeman oh man. You should definitely get an attorney to draft your PPM, investor questionnaire etc. this stuff is not to be winged.
A CPA can provide a letter certifying that the investor is accredited. Or can use sites like verifyinvestor.com
@Anthony Freeman
If you are trying to pool your investors, I would rely upon the attorney you hired to create this in the first place to outline the requirements and forms and docs to be verified. At the minimum, accept 3rd party verification, NOT self reporting by the potential investor.
The worse thing is an inexperienced/nonaccredited investors having mood swings with their investment funds while you are trying to operate. The last guy I sent money to required a 3rd party verification. And I was glad to do it because I know it was required of all other investors in the pool.
#4 Multi-Family and Apartment Investing Contributor
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#4 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Anthony Freeman, I am still unclear as to what "accredited investor form" you are looking to get. Are you looking to form a syndication and be the syndicator/general partner?
OR are you an accredited investor looking to invest as a limited partner?
#2 Real Estate Crowdfunding Contributor
- Investor
- Tampa, FL
Quote from @Anthony Freeman:
Quote from @Ian Ippolito:
Quote from @Anthony Freeman:There is no standard form and the sponsor will provide you with whatever is needed (to comply with their particular situation). If they are running under 506B then they usually have to have a pre-existing relationship with you via a phone call or other means, and then may have a questionnaire for you to fill out. If they are running under 506C, then you will have to provide third-party verification of being accredited via bank statements, tax forms, etc.
Can anyone tell me where to get an accredited investor form?
Thank you. Have you completed syndications before. I know many people have not completed them as they are risky.
You're welcome.
When you say "completed" do you mean have I invested in any? If so, I have invested in many of them (which includes traditional syndications as well as crowdfunding syndications which are essentially the same thing but allowed to be marketed over the Internet). There are indeed lots of potential risks, so an investor in the asset class is one that has gotten comfortable with evaluating sponsors and deals.
If you're asking if I've ever been the sponsor/issuer of any syndications, then the answer is no (as I'm an investor and not a syndicator).
Quote from @Ian Ippolito:
Quote from @Anthony Freeman:
Quote from @Ian Ippolito:
Quote from @Anthony Freeman:There is no standard form and the sponsor will provide you with whatever is needed (to comply with their particular situation). If they are running under 506B then they usually have to have a pre-existing relationship with you via a phone call or other means, and then may have a questionnaire for you to fill out. If they are running under 506C, then you will have to provide third-party verification of being accredited via bank statements, tax forms, etc.
Can anyone tell me where to get an accredited investor form?
Thank you. Have you completed syndications before. I know many people have not completed them as they are risky.
You're welcome.
When you say "completed" do you mean have I invested in any? If so, I have invested in many of them (which includes traditional syndications as well as crowdfunding syndications which are essentially the same thing but allowed to be marketed over the Internet). There are indeed lots of potential risks, so an investor in the asset class is one that has gotten comfortable with evaluating sponsors and deals.
If you're asking if I've ever been the sponsor/issuer of any syndications, then the answer is no (as I'm an investor and not a syndicator).
Yes you answered my question. Thank you for your response.
Quote from @Sam Yin:
@Anthony Freeman
If you are trying to pool your investors, I would rely upon the attorney you hired to create this in the first place to outline the requirements and forms and docs to be verified. At the minimum, accept 3rd party verification, NOT self reporting by the potential investor.
The worse thing is an inexperienced/nonaccredited investors having mood swings with their investment funds while you are trying to operate. The last guy I sent money to required a 3rd party verification. And I was glad to do it because I know it was required of all other investors in the pool.
Can you direct me to the syndicator?
I am speaking from the syndicator s perspective. Specifically verifying investors to stay in compliance with the SEC.