WHO IS AN ACCREDITED INVESTOR AND WHY IS IT IMPORTANT TO BECOME ONE?

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Accredited investors receive privileged access when it comes to investing in securities. So, it’s important to know if you are an accredited investor. An accredited investor is a person or business entity who is allowed to deal in securities, which may be publicly-traded stocks or private units in a limited liability company (LLC) or a number of other things, which may or may not be registered with financial authorities like the Securities and Exchange Commission (SEC) or a state securities commission. Accredited investors are entitled to view certain securities offerings if they satisfy one (or more) requirements regarding income, net…

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REAL ESTATE PROFESSIONALS HAVE AN ADVANTAGE WHEN INVESTING IN REAL ESTATE

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Real estate professionals have a distinct advantage when it comes to investing in real estate. Most people who invest in real estate have to follow what the Internal Revenue Service (IRS) calls Passive Activity Rules. These rules are found in Internal Revenue Service Publication 925. When an individual invests in real estate, it is likely that, even if you have a positive net cash flow from the property, the early years may show a taxable loss due to depreciation, which is permitted to be taken on the property. Here’s a quick example assuming you acquired a 50-unit apartment for $7,500,000…

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