Put simply, becoming an accredited investor should be a goal for all investors because it provides them with access to a much better selection of deals. In addition, accredited investors typically have a strong enough financial footing that they can absorb a few bad investments without suffering a personal financial hardship. You’ll find that learning from bad investments is a critical step in becoming a better investor. Contrary to what a financial advisor may tell you, everyone makes mistakes—especially financial professionals. But those mistakes will directly lead to improving your knowledge of investing, and that will have positive ripple effects for the rest of your life.
For these reasons, most of the alternative investments I cover in my writing are geared toward accredited investors.
However, if you don’t yet meet the criteria for accreditation, there are a variety of assets that are still available to you.
- High-equity life insurance policies
- Individual long-term mortgage notes [not funds]
- Mobile home parks [506(b) or joint venture]
- Self-storage [506(b) or joint venture]
- Apartment buildings [506(b) or joint venture]
- Startups [via Title III of the JOBS Act; restrictions apply]
- Individual ATM machines [not funds]
Note: If you are a non-accredited investor strictly looking to remain passive, you should avoid getting into deals that would require a large time commitment, such as a joint venture. In all cases, you’ll want to follow the same basic guidelines as you would on any investment: learn as much as you can about every opportunity, conduct due diligence, network, and don’t rush into anything that seems too good to be true.
Future articles will certainly feature additions to this list and updates on the assets mentioned here. Just like you, I am always expanding my investment knowledge, both through my experiences and through my network.
If you liked this article and wish to continue on your path in learning about alternative investments, please make sure to check out my other educational articles as well as my book, The Alternative Investment Almanac: Expert Insights on Building Personal Wealth in Non-Traditional Ways.
Disclaimer: The information presented in this article is for informational purposes only and does not constitute professional financial or investment advice. The author does not make any guarantees or promises as to the results that may be obtained from it. You should never make any investment decision without first consulting with your own financial advisor and conducting your own research and due diligence. Even though, the author has made reasonable efforts to ensure that the contents of this article were correct at press time. The author disclaims all liability in the event that any information, commentary, analysis, opinions, advice and/or recommendations contained in this article results in any investment or other losses. Your use of the information in this article is at your own risk.