After you become an accredited investor, a wide range of investment opportunities open up, allowing the potential for greater long-term profitability.
Crowdfunding is an opportunity that involves the raising of money from a group of investors to supply capital for a particular business project or venture or product going to market. Crowdfunding operates on Internet platforms in a big way. Accredited investors have the chance to secure an equity position in these projects and companies.
Real Estate Syndication
In real estate syndication, numerous investors combine their resources to help purchase properties they would not be able to normally purchase on their own – for example malls, apartment buildings, and vacation villas. This is another opportunity to consider when you become an accredited investor.
A real estate investment trust (REIT) accepts investments from accredited investors. These trusts own properties and when their value rises, the accredited investor earns money also.
Private Equity Real Estate
A pool of investors combine their money together to purchase real estate in a private equity real estate arrangement. It is different from an REIT that gives investors fast access to publicly traded shares in underlying real estate investment opportunities.
These are actively managed firms that invest in options, futures, equities, commodities, and foreign currency. These funds take on increased risk in an effort to beat stock market returns and are therefore reserved for accredited investors.
Accredited investors provide venture capitalists with startup money in exchange for an equity position within the firm. These investments are often associated with higher risk and outside the normal risk tolerance of a bank.
A convertible investment is a type of security that may be converted into or exchanged as a stock at an agreed-upon price that is predetermined. They provide a buffer against downside risk while allowing the investor to achieve substantial appreciation.
An interval fund is an investment firm that buys back its own shares from its shareholders at different intervals. These funds are closed-ended and have restricted selling options. However, the rate of return possible with these funds typically exceeds what is achievable with a standard stock market return.
As is evident, after you become an accredited investor, the range of investment opportunities is wide-ranging. It is important to proceed with as much information and insight as possible when considering any opportunity.