Strategic Planning and Investing for Individuals

Non-accredited investors must meet a threshold of sophistication in order to be allowed to invest in 506(b) deals. The SEC defines a sophisticated investor as someone who meets: “The legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective inve

Promoters of 506(b) offerings are prohibited from engaging in general solicitations and may only solicit investors with whom they have a “substantial pre-existing relationship.”

Promotors of 506(c) offerings are allowed to mass market to anyone and everyone – this is known as general solicitation.

You’ve likely noticed that accredited investors need only self-certify for 506(b) offerings, but must go through a more rigorous verification process for 506(c) offerings. Why? It all comes down to differences in the solicitation (i.e.: advertising) rules of the two offering types. Ostensibly, the difference is an attempt by the SEC to protect inve

A 506(b) offering can take on however many accredited investors are needed to fund a project, but can accept no more than 35 non-accredited investors. A 506(c) offering may only take on accredited investors. As you can see, non-accredited investors are limited to 506(b) offerings only.

• Income of at least $200,000 per year for the past two years (or combined income of $300,000 if married) and an expectation of continuing to earn such income

From your perspective as an investor, the primary up-front hurdle is whether you are eligible to participate in a particular offering. If you are ineligible under Reg D you will not be able to invest regardless of your willingness to do so. Your eligibility for any particular offering hinges on two things: 1. Your status as either an accredited or

Syndications make sense for all parties concerned, which is why so many are created and funded – syndications are big business. They are how most projects of all types get financed. They are the way savvy passive investors earning $200k+ annually invest. They are your portal into a world of sophisticated investing where wealth is accumulated, nurtu

In a 2022, “Real Estate Guys Radio” show, hosts Robert Helms and Russell Gray interview syndication attorney Gene Trowbridge. Gene reported that according to Securities Exchange Commission (SEC) data for the prior 12-month period, syndication transaction volume reached $1.8 trillion, which was 3x more than all initial public offerings (i.e.: stock