Many private real estate offerings are available only to accredited investors. The definition is set by the U.S. Securities and Exchange Commission and can be met through financial criteria or certain professional qualifications.
Individuals most commonly qualify through income or net worth. Certain entities and trusts may also qualify under separate SEC criteria.
An individual may qualify with income above $200,000 in each of the two most recent years, or joint income with a spouse or partner above $300,000, together with a reasonable expectation of reaching the same level in the current year.
An individual may qualify with net worth above $1 million, alone or together with a spouse or partner, excluding the value of the primary residence.
Some companies, partnerships, trusts and other entities may qualify based on their assets, investments, structure or accredited owners. The applicable test depends on the entity type.
Other SEC-recognized eligibility categories, including certain securities licenses, also exist. See the SEC’s full definition.
The Laager Group generally expects to conduct publicly marketed offerings under Rule 506(c) of Regulation D. We may also conduct private offerings under Rule 506(b) or another available exemption when appropriate. The applicable exemption, investor eligibility requirements and verification procedures will be specified in the definitive documents for each offering.
Rule 506(c) requires more than simply asking an investor to check a box. The verification process is designed to give the issuer a reasonable basis to conclude that the purchaser is accredited.
Laager's publicly marketed offerings are intended for accredited investors. Eligibility and verification requirements are described in the applicable offering materials, and investors are guided through the required process before an investment is accepted.
When an investor is ready to proceed, Laager can provide access to a streamlined third-party verification process. Depending on the investor's circumstances, verification may be completed through income documentation or through an eligible professional who can provide the required confirmation.
Accredited status is an eligibility standard; it is not a determination that a particular investment is appropriate for an individual investor. Each investor should evaluate the specific offering, its risks, expected hold period and personal financial circumstances before investing.
View Current OpportunitiesThe SEC maintains current guidance on accredited-investor qualification and Rule 506(c) verification requirements.
This page provides general educational information, not individualized investment, legal, tax or accounting advice. Laager may publicly describe offerings conducted in reliance on Rule 506(c), but investment terms and risks must be assessed from the applicable private placement memorandum, subscription agreement, governing agreement and other definitive offering documents. Those documents control in the event of any inconsistency with the website. Participation requires satisfying the applicable eligibility and verification requirements.
The accredited-investor information above is a general summary and may not reflect every category, exception or interpretive issue under applicable securities laws. Investors should consult the current SEC rules and their own advisers regarding their individual circumstances.
