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 another... Now here's your host, Marco Santorelli.

Hello, my friends, and welcome to another episode

of Ask Marco.

Today's question comes from Melissa,

and she writes in and says, hi Marco,

avid listener here, and second time, I'd like to ask you a question. I've heard

advantages of being an accredited investor, but how do I get to be one?

Specifically, I'd like to know about the option of having a net worth of a million dollars,

since my primary residence is not included, how about the cash out refinance pulled out if it's

put away in savings? Can that be included in our net worth?

Why do syndications prefer an accredited investor? Thank you for all the information. So, Melissa, thanks for the question. I had to actually read this twice because I thought it was a pretty smart question to ask. I never really stopped to think about pulling equity out of your principal residence

which is not included in the definition of being an accredited investor and

then parking it away in savings, which by definition contributes to your overall net worth.

So to give you a ridiculous but hypothetical example, if you had a $10 million home that would not qualify or count towards

the definition of being an accredited investor. But if let's just say you didn't qualify as an accredited investor with a $10 million home

because you just don't have the income or the assets around it, but you pulled out, let's

say, one and a half million dollars of equity and parked it into a savings

account as liquid cash, that technically qualifies you as an accredited investor.

So let's talk about the definition. Let's start right there.

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