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.
Mr. Karsh is CEO and Co-Founder of Streitwise and Tryperion Holdings.
Prior to forming Streitwise, Mr. Karsh was an Acquisitions Analyst for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for underwriting, structuring and executing value-add and opportunistic transactions. He holds a Bachelor of Arts degree in Political Science from the University of Pennsylvania. Mr. Karsh is a member of ULI and is also a Real Estate & Construction member of the Jewish Federation of Greater Los Angeles.