To participate in an investment, you must be an accredited investor.
What is an Accredited Investor?
Federal laws require that companies register with the Securities and Exchange Commission (SEC) prior to selling any securities to investors. These laws are designed to protect investors. However, there are certain exemptions to this registration requirement.
One exemption from registration is provided by Regulation D, which allows companies to offer securities to “accredited investors” in a private offering. Accredited Investors are defined by the SEC as individuals with income exceeding $200,000 annually ($300,000 per couple) with the expectation of that continuing, or a net worth of more than $1 million, excluding the value of the primary residence.
How do I verify my accredited status?
Denholtz has two ways to proceed with verifying your accredited status.
- Use VerifyInvestor.com via your investing account (instructions are outlined in this article: How do I access VerifyInvestor.com?)
- Use a qualified, independent third-party verifier, such as your CPA, attorney, or wealth advisor. You may use the verification letter template below.
Can Denholtz Verify my accreditation?
No, Denholtz is not an SEC-qualified party and cannot verify your accreditation. Please do not upload financial documents (e.g. account balance statements, tax returns, W-2s, etc.) directly to your CrowdStreet Transaction Center for this purpose.
CrowdStreet does not require and will not store this type of documentation for you to invest on the CrowdStreet marketplace. We only require a letter verifying your accredited status, per SEC rules.
What kind of documentation is required to verify my accreditation?
The majority of investors are asked to supply to their SEC-qualified verifier copies of W-2s or tax returns to verify annual income, and/or account balance statements to verify net worth, but additional requirements may vary depending on the complexity of the investor’s financial situation.
We suggest either reaching out to your CPA, attorney, or wealth advisor, or to use VerifyInvestor.com (they will answer questions about the specific documentation required by emailing firstname.lastname@example.org).