Private placements for non-accredited investors
Hi, I'm just wonder if there are any investment oppotunities on private placement offerings for non-accredited investors? I've looked into RealtyMogul and Realtyshares (now it's called iintoo, I believe). Both of these companies only open their private placement offerings to accredited investors. most of these offers accept minimum investment amount of only $25,000 to $35,000, I have that kind of money but I just don't have a $200,000 annual income or $1M in asset to be qualified to be an accredited investor. I'm wondering if there are any websites or companies that accept non-accredited investors to invest in their private placement offerings. Thanks in advance
Those types of sites often use Reg D Rule 506c, which allows public advertising but requires all investors to be accredited. It is a bit tougher as a non-accredited investor, because Reg D Rule 506b does allow non-accredited sophisticated investors, but limits it to 35 of them and investors must have a substantive pre-existing relationship with the sponsor.
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
- 3,875
- Votes |
- 4,516
- Posts
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
There are, but these guidelines are in place to protect investors.
One way perhaps to find more deal flow that allows sophisticated investors is to go to one of the multi-family conferences or a conference that educates people on private placements.
Plenty of talk here on BP of such conferences....you might try the BPCON coming up in the fall in San Diego, Think Multi, Best Ever, Rod Khleif, Brad Sumrok, Grant Cardone, MFIM and probably plenty of others.
Most of these are geared towards multi, but there are probably other conferences that focus on other kinds of private placements such as ATMs, self storage, NNN single tenant, industrial, vineyards, and others.
Since they can't typically advertise these offerings unless they know you, you have to go network with people.....plus you'll learn a ton at the conferences which will make you a better investor.
Quote from @Bruce Lynn:
There are, but these guidelines are in place to protect investors.
One way perhaps to find more deal flow that allows sophisticated investors is to go to one of the multi-family conferences or a conference that educates people on private placements.
Plenty of talk here on BP of such conferences....you might try the BPCON coming up in the fall in San Diego, Think Multi, Best Ever, Rod Khleif, Brad Sumrok, Grant Cardone, MFIM and probably plenty of others.
Most of these are geared towards multi, but there are probably other conferences that focus on other kinds of private placements such as ATMs, self storage, NNN single tenant, industrial, vineyards, and others.
Since they can't typically advertise these offerings unless they know you, you have to go network with people.....plus you'll learn a ton at the conferences which will make you a better investor.
Thanks for all this information provided, Bruce
Quote from @Taylor L.:
Those types of sites often use Reg D Rule 506c, which allows public advertising but requires all investors to be accredited. It is a bit tougher as a non-accredited investor, because Reg D Rule 506b does allow non-accredited sophisticated investors, but limits it to 35 of them and investors must have a substantive pre-existing relationship with the sponsor.
I understand now. Thanks, Taylor. So basically, I have to know these sponsors privately in order to set my foot in if I'm not an accredited investor.
@Li Ou - Your profile did not show where you are. There are RE Meet-Ups in many locations, search to find ones near you. Many of them will be SF, but you will likely find a few that are MF. Attend, meet & greet, exchange contact information.
I live in the DFW area, which is a hot-bed of MF. Locally there are multiple Meet-Ups each week. If you are in an less active area, listen for Zoom calls that are educational and often have Zoom break-outs.
In 2010, knowing nothing, I visited a mentorship group and it was well worth it to me to pay the money. This allowed me to meet a lot of GPs and LPs from all across the country.
Deals are out there! I have received 100+ deal announcement this year so far, most of them are 506(b).
Quote from @Charles LeMaire:
@Li Ou - Your profile did not show where you are. There are RE Meet-Ups in many locations, search to find ones near you. Many of them will be SF, but you will likely find a few that are MF. Attend, meet & greet, exchange contact information.
I live in the DFW area, which is a hot-bed of MF. Locally there are multiple Meet-Ups each week. If you are in an less active area, listen for Zoom calls that are educational and often have Zoom break-outs.
In 2010, knowing nothing, I visited a mentorship group and it was well worth it to me to pay the money. This allowed me to meet a lot of GPs and LPs from all across the country.Deals are out there! I have received 100+ deal announcement this year so far, most of them are 506(b).
Hi, Charles, Thanks for the hint and sharing your experience.
#1 All Forums Contributor
- Investor
- Virginia
@Li Ou
Yes they are called regulation a+ offerings. They allow for non accredited investors to invest.
These offerings are registered and qualified by the SEC - it’s not an easy process, they are Costly and time consuming. It took 3 months to get ours qualified.
The sponsor can raise up to $75M per year. As an investor you buy “shares” into the company
Typically the min investment amount is also very low as it targets not just real estate investors but Main Street investors looking to diversify.
Hi @Li. You have gotten some good answers above. One alternative if not accredited would be to get Series 65 license. Here is a link with more information: https://www.sec.gov/corpfin/amendments-accredited-investor-definition-secg. We know a few people who took this route. Good luck!
Hi @Li Ou. You have gotten some good answers above. One alternative if not accredited would be to get Series 65 license. Here is a link with more information: https://www.sec.gov/corpfin/amendments-accredited-investor-definition-secg. We know a few people who took this route. Good luck!