You found an enticing offering for a commercial real estate deal. The fundamentals are there (ie: location, cap rate, LTC ratio, rent roll, and sponsor strengths). You reach out about investing only to face a major barrier imposed by the Securities and Exchange Commission (“SEC”). The offering you were looking at is for accredited investors only.
An accredited investor is someone whom the SEC defines as:
- Someone with a net worth, or a couple with a combined net worth, of at least $1M, less the value of their primary residence, or
- Someone with an income of at least $200k, or a couple with a combined income of at least $300k, for the last 2 years, and who is expecting to continue earning at that level
Note: There are a few other entities that the SEC considers accredited investors, but they fall into a broad category. See Investment Criteria section of OC.
It’s estimated that only 8.25% of all American households are actually accredited investors. That means that the majority of investors are considered to be non-accredited and their investing options are limited.
Streitwise is an option for those investors, both accredited and non-accredited. We are in fact one of the few options out there available to non-accredited investors to invest in private, professional managed real estate.
As a non-accredited investor, there are limitations. Notably, you cannot invest over 10% of the greater of your individual net worth or individual income. We do implore you to read the Investment Criteria section of the Offering Circular for more details on limitations.
In general, with a $2,500 minimum investment (250 shares), you can invest in this offering as an individual, Company (see limitations page in OC), Trust, or IRA.
Eliot Bencuya is the co-founder and CEO of Streitwise. Eliot has extensive experience identifying, underwriting, and executing value-add real estate investments.
Prior to forming Streitwise, he was a Vice President of Acquisitions for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for originating, underwriting, structuring and executing transactions in the Pacific Northwest, Northern California and Midwest regions. Mr. Bencuya also held positions at Sovereign Investment Company (a subsidiary of the Marcus and Millichap Company) and the investment banking division of Merrill Lynch & Co. He holds a Bachelor of Arts degree in Economics and International Studies from Yale University, and a Masters of Business Administration degree from the Haas School of Business at the University of California, Berkeley. Mr. Bencuya is a member of ULI.