Why Anyone Can Invest In Commercial Real Estate
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Loading... - Margarita Zavala
- 14 Jul 2022
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Real estate is almost always one of the best investments a person can make. The potential for property appreciation, plus the continuous rental income stream, makes real estate unparalleled in the investment world. While you can invest in equities and bonds, they will seldom provide you with the level of recurring income that real estate can, nor will they provide you with the many tax benefits that real estate investments enjoy.
The best part is that anyone can invest in real estate. Whether you have $10 or $100,000 to invest, whether you are an accredited or unaccredited investor, you can begin your journey building wealth through commercial real estate. Here's what you need to know to get started.
Unaccredited Real Estate Investing: What Is It?
If you have been looking at real estate investment opportunities, you have undoubtedly come across some sites and guidance that say that certain investments are only for "accredited investors." Upon seeing this term for the first time, many people immediately look up how to become accredited, such as what classes you should take to earn this accreditation.
However, this term is somewhat misleading. There is no way to earn this accreditation. It comes from the SEC, and the SEC defines an accredited investor in two ways:
• Someone who has earned $200,000 or more in the past two years ($300,000 joint with a spouse) and has a reasonable expectation of making the same amount this year.
• Someone who has $1 million or more in net worth or joint net worth, excluding the individual's primary residence.
The SEC deems you an accredited investor if you meet either one of those definitions. If not, you can only make an unaccredited real estate investment. Fortunately, there are still opportunities out there for unaccredited investment opportunities in real estate! Read More...
