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An accredited investment opens a variety of opportunities for you

When it comes to wealth formation in a state like Texas, there is a term you must know about, and that is an Accredited Investor. It takes money to make money, and accredited investors have added opportunities in that  arena. If you don’t understand what an accredited investment in Texas is or what it means for you, here is something to help you know it in a much better way.

What is meant by accredited investment?

An accredited investment is one in which an approved or authorized investor, as a person or a business entity, is permitted to deal in securities that may not be registered with financial authorities and regularities.

They are allowed to such advantaged access if they  satisfy one or, in some cases, more requirements in regards to income, asset size, net worth, governance status, or professional experience. In the US, the term is widely used by the Securities and Exchange Commission or SEC. Accredited investors are empowered to invest directly into the profitable world of private placements and equity, hedge funds, equity crowdfunding, and venture capital. However, all these are entirely determined by the SEC. Generally, accredited investors comprise of high net worth individuals or HNWI, insurance companies, banks, brokers, and trusts.

How to become an accredited investor?

Most people have a common misconception that there is  a process involved to become an accredited investor, but this is not true. Instead, the onus lies on the sellers of such securities to take several steps to verify the status of individuals or entities that want to be involved in accredited investments in Texas.

According to Rule 501, Regulation D of the Securities Act of 1933 (Reg. D), an accredited investor is defined through the limitations of income and net worth in the following ways:

  • An individual with income more than $200,000 every year in the last two years or joint income with a spouse more than $300,000 for those years and also reasonably expect the same level of income in the current year.
  • An individual with a net worth, or joint net worth with the spouse, that is more than $1 million at the time of purchase, without the worth of the principal residence of such person.

Why Become an Accredited Investor in Texas?

By being an accredited investor, you belong to the top layer of financially-qualified individuals or the relatively ‘elite’ club in the US, not just Texas alone. It is anticipated that the US is presently adding a considerably increasing newly accredited individuals daily who can discover a wide range of investment opportunities  and a variety of investment vehicles. Therefore you can explore a lot more than ever before.

At Wealth Builders Capital Investments, INC, a well-known privately held investment company, you can get proper guidance with time tested techniques to utilize accredited investments in the most profitable ways.