Investor education
What is an accredited investor?
An accredited investor is a person or entity the U.S. Securities and Exchange Commission (SEC) allows to invest in certain securities that aren't registered with the SEC — including private placements, Delaware Statutory Trust (DST) and 1031 offerings, and private funds. You qualify by meeting an income or net-worth threshold, or by holding a qualifying professional license. Here's exactly how to tell if you qualify, how to become one, and how status is verified.
Reviewed for general accuracy by a licensed investment advisor. Figures reflect SEC rules current as of July 7, 2026 and are subject to change. This article is educational and is not legal, tax, or investment advice.
Key takeaways
- An accredited investor is a person or entity the SEC allows to buy certain unregistered securities, such as private placements, DST and 1031 offerings, and private funds.
- You qualify as an individual if you earned more than $200,000 (or $300,000 jointly with a spouse or spousal equivalent) in each of the last two years, OR have a net worth over $1 million excluding your primary residence.
- You can also qualify by holding a Series 7, Series 65, or Series 82 license in good standing — regardless of income or net worth.
- There is no application, card, or government registry; you meet the definition (or you don't), and an issuer verifies it when you invest.
- Thresholds are set by the SEC and have not changed in 2026, though a 2025 House-passed bill (the INVEST Act) proposes adding new qualification pathways.
How do I know if I'm an accredited investor?
You're an accredited investor if you meet any one of the pathways below. You don't need to satisfy all of them — a single qualifying test is enough.
| Pathway | Threshold | The details |
|---|---|---|
| Income | Over $200,000 individually, or $300,000 with a spouse / spousal equivalent | You must have hit the threshold in each of the two most recent years and reasonably expect the same in the current year. |
| Net worth | Over $1 million, alone or with a spouse / spousal equivalent | Calculated excluding the value of your primary residence. A mortgage up to the home's fair market value is not counted as a liability. |
| Professional license | Series 7, Series 65, or Series 82 held in good standing | Added by the SEC in 2020. This pathway does not consider your income or net worth at all — the active license alone qualifies you. |
Source: SEC Regulation D, Rule 501. A "spousal equivalent" is a cohabitant in a relationship generally equivalent to a spouse. Thresholds are set by the SEC and have not changed in 2026.
How to become an accredited investor
There's a common misconception that accreditation is something you apply for. It isn't — there's no card, license, or government registry of accredited investors. You either meet the SEC's definition or you don't. In practice, there are three ways people reach it:
Cross the income threshold
Reach $200,000 in individual income (or $300,000 jointly) for two consecutive years, and expect to again this year.
Build the net worth
Grow your net worth beyond $1 million excluding your home — through investments, business equity, or other assets.
Earn a qualifying license
Pass and actively maintain the Series 65 (or Series 7 or 82). The Series 65 is the most accessible — no broker-dealer sponsorship required.
Entities can qualify too — see below. When you're ready to invest, the issuer confirms your status; you don't pre-register anywhere.
Can a business, trust, or LLC be an accredited investor?
Yes. Common ways an entity qualifies include:
- An entity with more than $5 million in investments, not formed just to make this investment.
- An entity in which all equity owners are themselves accredited investors.
- Banks, insurance companies, registered investment companies, and business development companies.
- A trust with more than $5 million in assets, directed by a sophisticated person.
- SEC- or state-registered investment advisers and exempt reporting advisers.
- Family offices with at least $5 million under management (and their family clients).
How do you verify accredited investor status?
For most private offerings, the issuer must take reasonable steps to confirm you qualify before you can invest. That typically means one of the following:
- Income: recent W-2s, 1099s, or tax returns for the last two years.
- Net worth: bank, brokerage, and statement documentation, plus a credit report to confirm liabilities.
- Professional license: confirmation of an active Series 7, 65, or 82 on FINRA BrokerCheck.
- Third-party letter: a written confirmation from a licensed CPA, attorney, registered broker-dealer, or investment adviser stating you qualify.
A third-party verification letter is often the simplest route because it doesn't require handing your full financial records to the issuer.
Accredited investor vs. qualified client vs. qualified purchaser
These three terms are easy to confuse but mean different things. "Accredited investor" is the one that matters for the private real estate offerings most investors encounter:
| Standard | Rough threshold | What it unlocks |
|---|---|---|
| Accredited investor | $200k/$300k income or $1M net worth (ex-home), or Series 7/65/82 | Reg D private placements — including DST & 1031 securitized offerings |
| Qualified client | $1.4M managed by the adviser, or $2.7M net worth (2026) | Lets an investment adviser charge performance-based fees |
| Qualified purchaser | Generally $5M+ in investments (individuals) | Access to larger 3(c)(7) private funds |
Qualified-client figures reflect the SEC's 2026 inflation adjustment, effective June 29, 2026. Accredited-investor thresholds were not adjusted.
Is the accredited investor definition changing?
The income and net-worth thresholds have not been raised since they were introduced, and they remain unchanged in 2026. Change may be coming, though: in December 2025 the U.S. House passed the INVEST Act, which would direct the SEC to add new qualification pathways based on professional licensing, education, or experience — including an SEC-administered accreditation exam — and to index the wealth thresholds to inflation. As of July 7, 2026 the bill is in the Senate and is not yet law. We'll update this page if it changes.
Why it matters for DST & 1031 investing
The Delaware Statutory Trust (DST) and fractional TIC offerings we work with are private placements under Regulation D, so they're available to accredited investors. If you're planning a 1031 exchange, deferring capital gains, or seeking passive real estate income, the first step is simply confirming you qualify — and we can help you do that.
The bottom line
Being an accredited investor isn't a title you apply for — it's a standard you either meet or you don't, based on your income (over $200k / $300k), your net worth (over $1 million excluding your home), or an active Series 7, 65, or 82 license. Meeting any one is enough, and it opens the door to private offerings like DSTs and securitized 1031 exchanges. If you're unsure whether you qualify — or how to verify it — a quick conversation is the fastest way to find out.
Accredited investor FAQs
What is an accredited investor?
An accredited investor is an individual or entity that the U.S. Securities and Exchange Commission (SEC) permits to invest in certain securities that are not registered with the SEC — such as private placements, Delaware Statutory Trust (DST) and securitized 1031 offerings, private equity, and hedge funds. The status is defined in Regulation D, Rule 501, and is based on financial thresholds or professional credentials rather than a test or application.
How do I know if I'm an accredited investor?
You are an accredited investor if you meet any one of these: (1) individual income over $200,000 — or $300,000 jointly with a spouse or spousal equivalent — in each of the last two years, with the same expected this year; (2) a net worth over $1 million alone or with a spouse, excluding your primary residence; or (3) a Series 7, Series 65, or Series 82 license held in good standing. Meeting just one pathway is enough.
How do I become an accredited investor?
There is no application, card, or registry — you simply meet the SEC's definition or you don't. In practice, people 'become' accredited by crossing the income or net-worth threshold, or by earning and maintaining a Series 7, 65, or 82 license in good standing (the Series 65 is the most common route because it does not require sponsorship by a broker-dealer). When you invest, the issuer verifies that you qualify.
What are the income requirements to be an accredited investor?
Individual income over $200,000 in each of the two most recent years, or joint income with a spouse or spousal equivalent over $300,000 in each of those years, with a reasonable expectation of reaching the same level in the current year. You cannot mix an individual figure one year with a joint figure another year.
What is the net worth requirement for an accredited investor?
A net worth exceeding $1 million, either alone or together with a spouse or spousal equivalent, at the time you invest. The value of your primary residence is excluded from the calculation, and the mortgage on it is generally not counted as a liability up to the home's fair market value.
Can I qualify as an accredited investor with a Series 65?
Yes. Since 2020, holding a Series 7, Series 65, or Series 82 license in good standing qualifies you as an accredited investor regardless of your income or net worth. The license must be active — a lapsed or inactive license does not count.
Do I need to be an accredited investor to invest in a DST or 1031 offering?
For securitized offerings — Delaware Statutory Trust (DST) and fractional TIC interests sold as private placements under Regulation D — yes, you generally must be an accredited investor. A traditional 1031 exchange where you personally buy replacement real estate is not a securities transaction and does not require accreditation. The distinction matters, and it's one of the things we help investors sort out.
How do I prove or verify that I'm an accredited investor?
For most offerings you confirm your status by providing documentation — tax returns or W-2s for income, account statements and a credit report for net worth, or evidence of an active Series 7/65/82 license. Many issuers also accept a written confirmation letter from a licensed CPA, attorney, broker-dealer, or investment adviser verifying that you qualify.
For educational purposes only. This page summarizes SEC rules current as of July 7, 2026 and is not legal, tax, or investment advice, nor an offer to sell or a solicitation to buy any security. Accredited-investor rules are set by the SEC and are subject to change. Always confirm your status and any investment decision with your own qualified advisors. Securities offered through Emerson Equity LLC, Member FINRA/SIPC.