The SEC governs who can and cannot sell and purchase securities, and which investments must be registered with the SEC. These rules, while complicated, exist for a reason–they help prevent fraud and protect investors. The SEC has laid out a set of financial criteria designating certain investors as “accredited” and only accredited investors are allowed to invest in deals on the CrowdStreet Marketplace.
But did you know that accreditation is a definition, not a process? You’re an accredited investor if:
You earned more than $200,000 in each of the last two years (or more than $300,000 together with your spouse in each of those years) and reasonably expect the same for this year.
You have a net worth over $1 million, either alone or together with your spouse, excluding the value of your primary residence.
You are not required to prove your accreditation status until after you submit your offer.
And we’ve made verifying your status as easy as possible:
Get a letter signed by your CPA, attorney, or wealth advisor
The SEC requires accreditation to be verified by a qualified, independent third party. Qualified parties under the SEC rules would include a CPA, attorney, or wealth advisor attached to a registered broker-dealer. If you who already work with one of these parties, ask them to complete and sign this one-page template letter, and then scan and upload it to your CrowdStreet portal.
Use our online, integrated workflow through VerifyInvestor.com
CrowdStreet investors may use our integrated third-party partner, VerifyInvestor.com. If you use the integration through the CrowdStreet platform, we’re able to absorb the cost of this service on your behalf. To use VerifyInvestor.com, simply follow the link in the Transaction Center, which becomes available after submitting you closing documents for a given offer.
VerifyInvestor will ask you to securely upload documentation such as W-2s, tax returns, and/or account balance statements for review by their team of attorneys. Your accreditation verification letter will be automatically imported into your CrowdStreet account, typically in one to two days.
Please note that, per SEC rules, each accreditation verification letter is only valid for 90 days. If you make multiple investments over time you will need to periodically renew your verification.