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When investing in a private placement, also know as a PPM, Crowdfunding, Syndication, etc. you will be asked for your “accredited investor” status.

Typically, this means a person or a business entity who can deal in securities that may not be registered with financial authorities.  These include natural high net worth individuals (HNWI), banks, insurance companies, brokers and trusts.

To be considered an accredited investor, you must have a net worth of at least $1,000,000, excluding the value of your primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount. Presently the SEC may expand this definition as detailed in this article from June 19, 2019 HERE.

The good news is the process for setting up a Self-Directed IRA is no different for accredited or non-accredited investors.  

You may find some of these private placement investments will take both accredited and non-accredited investors and with some you must be accredited. Before investing into such an offering be sure to do your due diligence on the asset sponsors and on the offering itself.  You can find some helpful information on the website of FINRA (The Financial Industry Regulatory Authority) HERE as well as on the website of NASAA (The North American Securities Administrators’ Association) HERE.

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