What Is an Accredited Investor?
An accredited investor is a person or entity that meets certain income or net worth thresholds set by the U.S. Securities and Exchange Commission (SEC), which allows them to invest in private offerings that are not available to the general public, such as real estate syndications, private equity, and certain other private investments.
In plain terms: the SEC assumes that people above these thresholds have enough financial sophistication or cushion to take on the added risk of private investments, so it allows them access that most investors do not have. If you qualify, a whole category of opportunities opens up to you, including deals like the multifamily offerings Jetstream brings to its investors.
How You Qualify
There are a few different ways to qualify as an accredited investor. You only need to meet one of them. Here are the main paths for an individual.
The income test
You qualify if you earned more than $200,000 in each of the past two years, or more than $300,000 together with a spouse or partner, and you reasonably expect to reach the same level in the current year. The income has to be consistent, not a one-time spike.
The net-worth test
You qualify if your net worth, alone or together with a spouse or partner, is more than $1 million, not counting the value of your primary home. This is your assets minus your liabilities, with your main residence set aside from the calculation.
The credential path
The SEC has also opened accreditation to individuals who hold certain professional licenses or credentials, such as specific securities licenses, in recognition that financial knowledge, not just wealth, can qualify someone.
Why This Rule Exists
Private investments are not registered with the SEC the way public stocks are, which means they come with less public disclosure and, often, more risk.
The accreditation rule is the SEC’s way of limiting these opportunities to people who are more likely to be able to evaluate the risk or absorb a loss if things go wrong. It is a protective measure, not an arbitrary gate.
It also explains why offerings like ours are open only to accredited investors. When a sponsor raises capital under the SEC rule known as Rule 506(c) of Regulation D, which allows raising money from accredited investors nationwide, verifying that every investor qualifies is part of following the rules correctly.
How Verification Works
Under Rule 506(c), it is not enough for an investor to simply say they are accredited. The sponsor is expected to take reasonable steps to verify it. In practice, that usually means reviewing documentation such as tax returns, W-2s, or bank and brokerage statements, or accepting a written confirmation from a qualified third party like a CPA, attorney, or a registered investment adviser.
If you have invested in private offerings before, this step will feel familiar. If you have not, it is straightforward, and a good sponsor will walk you through exactly what is needed. The point is simply to confirm, on the record, that you qualify before you invest.
What Being Accredited Lets You Do
Qualifying as an accredited investor gives you access to a category of investing that most people never see: private real estate syndications, private equity, and other offerings that are not sold on public markets.
These investments can offer strong returns, meaningful tax advantages, and diversification away from the stock market, precisely because they are not available to everyone.
For many high earners, this is the missing piece. You have the income. What you may not have had is access to the kinds of investments that turn a high income into lasting, tax advantaged wealth.
Accreditation is the key that opens that door, and passive multifamily real estate is one of the most popular ways accredited investors choose to walk through it.
Clearing Up the Common Confusion
A few things trip people up when they first look into this. Here are the ones we hear most, cleared up.
My house counts toward my net worth.
Not for this purpose. The value of your primary residence is specifically excluded from the $1 million net-worth calculation. Your other assets, minus your debts, are what count.
I need to be accredited before I can even have a conversation.
No. You can learn, ask questions, and understand the process at any time. Verification only comes into play when you are ready to actually invest in a specific offering.
Accreditation is a formal certificate I apply for once.
There is no government-issued accredited investor card or license. You are not certified once and forever. Instead, your status is confirmed at the time you invest, based on your current income or net worth, for that specific offering.
My retirement account can't be involved.
It often can. Many accredited investors use a self-directed IRA or 401(k) to invest in real estate, which lets retirement funds work inside a tax-advantaged account. The accreditation still applies to you as the investor.
I earn well, so I'm automatically accredited.
Close, but the income test is specific: it looks at whether you have crossed the threshold for the past two years and expect to again this year. A single strong year is not enough on its own. The rule is about consistency.
Get In Touch With Us
Get clear answers about accreditation, eligibility, and the investment process. Our team is here to help.
Investing With Jetstream as an Accredited Investor
Past performance is not indicative of future results.
Every Jetstream offering is open to accredited investors, with a typical minimum of $50,000. If you meet one of the thresholds above, you can review our current opportunities, confirm your status, and invest as a limited partner, earning passive income from institutional-quality multifamily real estate. If you are not sure whether you qualify, or you are close and want to talk it through, just reach out. We are glad to help you understand where you stand, with no pressure to go further.
The Short Version
Accredited investor
An accredited investor meets SEC income or net-worth thresholds that allow access to private investments.
Income path
over $200,000 individually, or $300,000 with a spouse or partner, for the past two years, with the same expected this year.
Net-worth path
Over $1 million, excluding your primary home.
Credential path
certain professional licenses also qualify.
You only need to meet one path to qualify.
Under Rule 506(c), your status is verified before you invest.
Accreditation unlocks private opportunities like multifamily real estate syndications.
Frequently Asked Questions
The questions investors ask before anything else. Not seeing yours? Send it over — no call required.
What is an accredited investor?
An accredited investor is a person or entity that meets SEC income or net-worth thresholds, which allows them to invest in private offerings not available to the general public, such as real estate syndications and private equity.
What are the income requirements to be accredited?
You qualify by income if you earned over $200,000 individually, or over $300,000 with a spouse or partner, in each of the past two years, and reasonably expect the same in the current year.
What is the net-worth requirement?
A net worth over $1 million, alone or with a spouse or partner, not counting the value of your primary residence.
Can I qualify without a high income or net worth?
Possibly. The SEC also allows certain professional licenses and credentials to qualify a person as accredited, in recognition that financial knowledge can matter as much as wealth.
How is accredited investor status verified?
Under Rule 506(c), a sponsor takes reasonable steps to verify your status, typically by reviewing documents like tax returns or account statements, or accepting a written confirmation from a CPA, attorney, or registered investment adviser.
Do I need to be accredited to invest with Jetstream?
Yes. Jetstream’s offerings are open only to verified accredited investors. If you are unsure whether you qualify, reach out and we can help you understand where you stand.
Now You Know Where You Stand
If you meet one of these thresholds, a category of investing most people never access is open to you. See what is available now, or ask a question if you want to talk it through first.
This page is educational and does not constitute legal, tax, or financial advice. Accredited investor rules are set by the SEC and may change. Consult a qualified professional about your specific situation. Securities are offered only to verified accredited investors under Rule 506(c) of Regulation D.