I want to create an LLC syndicate to purchase a residential property, and want to allow Self-Directed IRA participants looking for alternative investments. Are there any SEC/other regulations limiting those participants to "accredited investors" only? Can I open it up to non-accredited investors? Is there something that would prevent a non-accredited investor with a sizable SD IRA to participate as a limited partner? If possible, what is the optimal legal business structure to include non-accredited investors with SD-IRAs?
Hi @John Smith, in answer to your question, "Yes", there is a regulation dictating when you can raise funds from non-accredited investors. It would bode well for you to dig deeply into this before putting any real wheels in motion, as you'll be dealing with OPM and have a high level of responsibility and (therefore) risk.
The book by Matt and Liz Faircloth on Raising Private Capital would be a prudent read.