How to Find Accredited Investors for a Real Estate Deal
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To find accredited investors for a real estate deal, start with people who already know and trust you (colleagues, clients, peers and friends and followers of your content) and look for the ones who meet the SEC's income, net worth or license tests. They are more common than most sponsors assume: SEC staff estimated that about 24.3 million US households, 18.5% of the total, qualified in 2022. How you may reach them depends on your exemption: under Rule 506(b) only people you had a substantive relationship with before the offering, under Rule 506(c) anyone, with verification.
This post is about accredited investors specifically. For the broader question, see how to find investors for a real estate deal.
Who counts as an accredited investor?
The definition is in Rule 501(a) (17 CFR 230.501). For individuals, the main paths are:
| Path | Test |
|---|---|
| Income | Over $200,000 in each of the two most recent years, or over $300,000 with a spouse or spousal equivalent, and a reasonable expectation of the same this year |
| Net worth | Over $1 million, alone or with a spouse or spousal equivalent, not counting the primary home |
| Professional license | Holds a Series 7, Series 65 or Series 82 license in good standing |
| Knowledgeable employee | Of the private fund making the offering (rare in real estate deals) |
Entities, trusts and family offices have their own tests; see accredited investor rules for an LLC or other entity. The full definition is in accredited investor definition.
How many accredited investors are there?
SEC staff estimated, from the Federal Reserve's Survey of Consumer Finances, that about 24.3 million US households met at least one of the financial tests in 2022, or 18.5% of households (SEC staff review of the accredited investor definition, 2023). The individual income test alone covered about 18.1 million households (13.8%) and the net worth test about 16.4 million (12.5%); many households meet both. Because the dollar thresholds are not indexed to inflation, the share has grown a lot: the same report puts it at 1.8% of households in 1983.
In practice, many of the people around you may already qualify, especially homeowners in their 50s and 60s with retirement savings and professionals in their peak earning years.
Where do sponsors find accredited investors?
Ordered from warmest to coldest:
- People who already know you. Coworkers, former colleagues, clients, your professional network, people in your community. These relationships also keep 506(b) open.
- Friends and followers of your content. People who watch your videos, listen to your podcast or read your newsletter and have chosen to hear from you. See how much a sponsor can raise from followers.
- Professional circles. Physicians, dentists, engineers, attorneys and business owners often meet the income test. Speaking at their associations about how syndications work (without offering a deal) builds relationships.
- Real estate events. Meetups and conferences are good for meeting people; check the rules before pitching. See pitching at a real estate meetup.
- Paid reach. Ads and bought lists reach strangers, so they need 506(c). See Facebook ads for a syndication and accredited investor lead lists.
How does your exemption change the search?
| Topic | Rule 506(b) | Rule 506(c) |
|---|---|---|
| Who you may offer to | People with a pre-existing, substantive relationship | Anyone |
| How you learn they are accredited | A questionnaire and what you know about them | Reasonable steps to verify each one |
| Public posts about the deal | Not allowed | Allowed |
The SEC describes a substantive relationship as one where the issuer has enough information to evaluate, and does evaluate, the person's status as an investor, formed before the offering begins (SEC, general solicitation). If you want to talk about a live deal publicly, use 506(c) and plan for verification: tax documents, bank statements, a CPA or attorney letter, or, since March 2025, a high minimum investment with written representations (SEC staff letter, 2025). More in accredited investor verification.
How do you ask someone if they are accredited?
Privately, and as a routine step, not a judgment. A simple way:
"This offering is open only to accredited investors. Do you know whether you qualify? There's a short questionnaire that walks through the tests."
Then use a written accredited investor questionnaire. Never guess from someone's job, house or car, and never pressure someone into saying they qualify.
Our take
Most first deals are filled by a few dozen people who already trusted the sponsor. Spend your time on content and relationships that make the right people want to invest with you, and use cold channels last.
Trade-offs and who this is not for
- Accredited only shrinks the pool. People who do not qualify cannot invest in a 506(c) deal at all.
- Verification takes time. Build it into your raise timeline.
- Common mistake: pitching first, asking later. Under 506(b), confirm the relationship before you offer anything.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5+ units from friends and followers who already trust them, under Rule 506(b) or 506(c). We are software, legal document preparation, escrow coordination and verification services. We are not a law firm, broker-dealer, investment adviser, funding portal, bank or escrow agent, and we do not hold investor money: investors wire their money to escrow at Enterprise Bank & Trust, in the deal's name.
DoorRaise verifies that every investor is accredited, in 506(b) and 506(c) raises alike, and the deal page tells visitors up front who can invest. Flat fees, never a percentage of the raise (see pricing). Create your free sponsor page.
FAQ
Where can I find accredited investors?
Start with people who already know you: colleagues, clients, your professional network and friends and followers of your content. Paid ads and lists reach strangers and require a 506(c) offering.
What percentage of Americans are accredited investors?
SEC staff estimated 18.5% of US households, about 24.3 million, met the income or net worth tests in 2022.
Can I ask someone how much money they make?
You can ask whether they meet the accredited investor tests, privately, through a questionnaire. Under 506(c), you then verify with documents or a third-party letter.
Do doctors count as accredited investors?
Not automatically. Many physicians meet the income test, but each person must meet a test in Rule 501(a) on their own facts.
Sources
- 17 CFR 230.501
- 17 CFR 230.506
- SEC staff, review of the definition of accredited investor (2023)
- SEC, general solicitation
- SEC staff letter to Latham & Watkins, March 12, 2025
This article is general information, not legal, tax or investment advice. Talk to a securities attorney about your offering. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.