To qualify as an accredited investor, you need to have a net worth exceeding $1 million or you need to be earning a yearly salary over $200,000.
That criteria intentionally disqualifies quite a few people due to accredited investments having the potential to lose you a lot more money than other investments.
But they can also gain you quite a bit more too.
If you qualify and have been wondering about your options, a new post from Rocket Mortgage shared some ideas worth checking out, so here is a rundown of what you might want to consider.
Real estate investment trusts are groups that handle funds to invest into properties like malls, hotels, and apartments.
In essence, this lets you put money into real estate without having to assume the duties of a landlord.
You may know about crowdfunding sites like Kickstarter or GoFundMe. The same concept exists for much bigger projects, such as crowdfunding for real estate development.
Hedge funds are another option managed by career investors, which can be perfect if you prefer not to be bogged down by the nitty-gritty and just want to let a pro handle things.
This is similar to angel investors, where you are putting your money into a starting business. The risk is, if the business falters, you lose your money. But if they thrive, you get in on the ground floor of an exciting project.
For an option that is more similar to investments you may already know, interval funds allow you to purchase shares from a fund and elect to sell them back when the price is right, or hang onto them hoping to see them rise in value.
Private Equity Real Estate
A bit similar to REITs, except in this instance you are investing in funds managed by professionals who are looking at promising new real estate projects.
Hard Money Loans
As an accredited investor, you can offer similar services to that of a bank, including providing loans. Whoever borrows from you puts up collateral, and they either pay you back plus the interest, or you get the collateral.
This term refers to things like financial shares or bonds or whatever else that you may wind up purchasing only to later have it converted into stock.
Real Estate Syndication
As the name suggests, this investment option makes you a part of a team effort to buy a property. If a property is beyond your finances, you and others all contribute to buy it together to work on it as an investment.
Being an accredited investor opens up a whole new world of opportunities for you to dramatically increase your earnings.
If you want to learn more about how any of these investment options work, check out Rocket Mortgage’s post here.
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