Accredited Investor
An accredited investor is a person or entity that meets SEC income or net worth thresholds, allowing them to buy private, unregistered securities like DSTs.
Definition
An accredited investor is someone the SEC considers financially sophisticated enough to invest in private offerings that are not registered with regulators. Most DSTs, Opportunity Zone funds, and private placements are sold only to accredited investors under Regulation D.
An individual qualifies with either income over $200,000 (or $300,000 jointly with a spouse) in each of the two most recent years with the same expected this year, or a net worth over $1 million excluding the value of a primary residence. Since 2020, certain professional licenses (Series 7, 65, or 82) also qualify a person regardless of wealth.
Entities such as trusts or LLCs can qualify with over $5 million in assets. The status matters because it unlocks access to investments unavailable to the general public, but those investments are illiquid and carry less regulatory protection, so the thresholds exist to gauge who can bear the risk.
Key points
- Income over $200k single or $300k joint for the last two years
- Or net worth over $1 million excluding primary residence
- Series 7, 65, or 82 license holders also qualify
- Required to purchase most Regulation D private placements
- Entities generally qualify with over $5 million in assets
Related terms
Jerry Baker founded Baker 1031 Investments to help exchange investors move from active property ownership into passive, institutional-quality real estate through DST, 721 exchange, mineral royalty, and Opportunity Zone strategies. He holds the FINRA Series 22 and Series 63 registrations and the Securities Industry Essentials (SIE) qualification. Read full bio →
Reviewed by the Aurora Securities, Inc. compliance team — Aurora Securities, Inc., member FINRA/SIPC. Last reviewed July 2026. Securities are offered through Aurora Securities, Inc.; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc.
This glossary entry is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. Definitions are general and may not reflect your specific circumstances — consult your own CPA and attorney. Past performance does not guarantee future results.