Notes From Banks - Question

[Hannah Reichert]

Do you need to be an accredited investor to buy notes directly from banks? I didn't think so from the courses I've taken, but I recently listened to a podcast that suggested it, so wanted to see what others had experience with. Thank you.

[Andy Mirza]

@Hannah Reichert No, you don't have to be an accredited investor to buy whole loans from banks. All that matters is the relationships you have with the loan traders and their perceived ability that you'll close on time. Be sure you have your funds ready and available to deploy for anything you place bids on.

Accredited investor status is important when dealing with Reg D, 506(b) and 506 (c) private placement offerings. In the 506(b) offering an investor/subscriber needs to self identify as accredited or non-accredited. For 506(c) offerings, all investors/subscribers need to be accredited and have the documentation to prove it.