Welcome to passive real estate investing, the show where busy people like you learn

how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello my friends and welcome to a Now here's your host, Marco Santorelli's.

Hello, my friends, and welcome to another episode of Ask Marco,

where I answer your investing related questions.

Today's question comes from John, and John says,

hi Marco, love your podcast and the great resources

you have on your site.

Wondering if you can answer a question,

I seem to get conflicting info on.

I understand to be an accredited investor, you either have to make $200,000 a year for at least the last two years or have a net worth of a million dollars minus your primary residence. Is that the total value of your

primary residence or minus the equity in your primary residence factoring in your

mortgage balance? First off for those that are wondering what is an accredited investor, an accredited investor is

someone who meets a certain income and net worth designation which is defined by the Securities and Exchange

Commission, the SEC. I'm sure many of you, if not all of you, have heard of the SEC. And more specifically

as part of their regulations, it's under what's known as

rule 501 of regulation D. I know that sounds pretty technical you don't need to worry about

that part but being an accredited

investor allows you to invest in private offerings which are exempt from SEC

registration. So publicly traded securities are examples of securities that require SEC registration.

So think of the stock market, NASDAQ, New York Stock Exchange, all that stuff.

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