In the commercial real estate industry, there’s a good chance that you have encountered the term “accredited investor.” Accredited investors are permitted to invest in securities that are not registered with the Securities and Exchange Commission, and, in order to qualify, you must meet specific net worth and income guidelines. Due to their wealth, these investors have more access to investment opportunities than non-accredited investors do. From hedge funds to equity crowdfunding, the possibilities are endless. What are some of the reasons that you might want to explore becoming an accredited investor?
New Investment Opportunities
This is the biggest benefit of becoming an accredited investor to many, as you will open doors that are closed to others with a lower net worth or salary. You will have more access to investments that might have better diversification or higher rates of return, which can increase your wealth even further and increase it in a much shorter time frame than more traditional investments. Hedge funds, for example, are largely only available to accredited investors, as they can have a higher risk level but also offer higher rewards.
Some of the investment opportunities that are only available to an investor who is accredited include:
- Farmland crowdfunding
- Hedge funds
- Commercial real estate
- Real estate crowdfunding
- Real estate syndications
- Venture capital (also known as angel investing)
- And more!
Investing only in the public markets available to anyone gives you fewer diversification opportunities. When you are able to invest in alternative assets that are more exclusive as an accredited investor, it will allow you to distribute your overall risk level better and help to diversify your investment portfolio further. Real estate investing, for example, is one way to pull some of your money out of traditional places like the stock market and allow your money to work for you. A diverse portfolio can be achieved with help from a team like MKS&H, and we know how to help evaluate your portfolio and ensure that you are on the financial path you want to be on.
Financial Planning for Commercial Real Estate from MKS&H
MKS&H provides tax and accounting services to businesses of every size and in every industry, including the commercial real estate industry. Our team can help your business gain confidence in your important accounting reports and make better, more educated financial decisions. Contact us today for a consultation.
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.