What Is an Accredited Investor?

An accredited investor is an individual or entity that meets specific financial criteria set by the U.S. Securities and Exchange Commission (SEC). These criteria are designed to ensure that investors have the financial sophistication and ability to bear the risks associated with private, unregistered securities offerings.

To qualify as an accredited investor in the United States, an individual must meet at least one of the following requirements:

• Income Test: Earned an individual income exceeding $200,000 (or $300,000 jointly with a spouse or spousal equivalent) in each                  of the previous two years, with a reasonable expectation of maintaining that income level in the current year.

• Net Worth Test: Have a net worth exceeding $1 million, either individually or jointly with a spouse or spousal equivalent,

      excluding the value of the primary residence.

• Professional Credentials: Hold a Series 7, 65, or 82 license and maintain it in good standing.

Entities such as banks, trusts, LLCs, or partnerships may also qualify if they have more than $5 million in assets or if all equity owners are accredited.

These requirements are codified in Rule 501 of Regulation D of the Securities Act of 1933 and are periodically updated by the SEC to reflect market conditions and investor protections.

Why Does It Matter?

Being an accredited investor enables access to a broader range of investment opportunities that are typically not registered with the SEC and are therefore subject to fewer regulatory constraints. These include:

1. Access to Exclusive Private Deals

Accredited investors can invest in private equity funds, hedge funds, venture capital deals, and private real estate syndications, like those offered by Atlantikos Capital, that often have higher return profiles and lower competition.

2. Higher Return Potential

Private real estate deals may offer target internal rates of return (IRR) between 12% and 18%, depending on the asset class and strategy. These returns often exceed those of publicly traded REITs or traditional fixed-income products.

3. Greater Portfolio Diversification

Private real estate is typically less correlated with public equities and provides a hedge against inflation through tangible asset appreciation and income-generating potential. This diversification can reduce overall portfolio volatility.

4. Tax Advantages

Accredited investors participating in real estate deals may benefit from pass-through depreciation, interest expense deductions, and even capital gains tax deferral through 1031 exchanges, depending on how the investment is structured.

The Role of Atlantikos Capital

At Atlantikos Capital, we focus on providing accredited investors with access to institutional-quality real estate projects that are typically reserved for private equity groups and large funds. Our offerings include:

• Cambria Hotel at Ocoee – A premium hospitality investment with projected high-yield returns.

• Prime Medical Building – A modern, income-producing medical property.

• Boat & RV Storage Facility – A secure, high-demand infrastructure investment.

We assist investors throughout the accreditation process, ensure transparency, and provide real-time access to investment performance through our secure online platform.

Accredited investor status is more than a regulatory distinction, it’s a gateway to smarter, more sophisticated investing. For those who meet the qualifications, it opens doors to private, performance-driven opportunities in the real estate space that would otherwise be out of reach.

At Atlantikos Capital, we’re committed to guiding our clients through this landscape with professionalism, insight, and access to investments that build long-term wealth.

Sources:

• U.S. Securities and Exchange Commission (SEC)

• Investor.gov

• Forbes Finance Council

• Wall Street Journal