Accredited Investor Qualification

Hi everybody my name is John Fischer, welcome to not to be confused with That’s a competitor she sells cheaper leads and she sells um you know mostly uh model information uh the difference between our data my data and her data is she’s doing like info USA lead genie, sales genie type of data very cheap. I sell data to people that have been vetted by a broker-dealer then mail the private placement memorandum and have also been qualified 25 to 50,000, but I want to talk about the accredited investor qualification, and you know what does it mean by accredited investor qualification.

Well, let’s define an accredited investor is somebody that makes at least 200,000 a year for the last two years, three hundred thousand dollar combined or a million net worth, not including their homes and experience in managing their personal portfolio. So that’s what the actual qualification is. Who has to be an accredited investor and why do we have accredited investor qualifications? You know back in the old days when the reg d’s first came out there was the 504,505, 506. The 504 was one million-plus actually zero to the million, the 505 was a million to five million and then the 506 was the 5 million-plus these reg d’s. You had to have a 30 day coupon period it was for friends and family touch and go with the solicitation as long as you had a 30 day call off period, but enter a couple of years ago they came out with the reg d506c. When you could solicit now the non-seized the 504, 505, 506 they weren’t that crazy about being accredited.

Matter of fact they actually had exemptions so you’d be able to have 35 people that were not accredited but I’ve always recommended to people not to use the exemption because it just added more scrutiny. See all the security exchange commission cares about is that these people are sophisticated that they have the money and god forbid because the nature of a private placement is that 90 of them go south. You know they never come to fruition, that these people have the ability to withstand the loss of that particular investment so uh that’s why they always go for that accredited being so strong they figure hey if the guy’s accredited he’s got that kind of money he knows what he’s doing.

So again when you’re looking at accredited investor qualification, what they’re looking for and what they mean is again what I said that the 200,000 income for the last two years, or 300,000 combined million net worth not including your home and experience in managing your personal portfolio and I hope that helps you guys out. If you have any questions about the accredited investor qualification call me at 561-239-0364.

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