What makes an investor “accredited”
You generally qualify as an accredited investor if you meet any one of the criteria below. This is a summary; the full SEC definition under Rule 501 controls, and your own advisors can confirm your status.
| Test | Threshold |
|---|---|
| Income | Over $200,000 individually (or $300,000 with a spouse / spousal equivalent) in each of the last two years, with the same expected this year |
| Net worth | Individual or joint net worth over $1,000,000, excluding the value of your primary residence |
| Professional license | Holding a Series 7, 65, or 82 license in good standing |
| Entities | Certain trusts, LLCs, and family offices with over $5,000,000 in assets, or entities whose equity owners are all accredited |
Summary only; not legal advice. The full SEC Rule 501 definition controls.
Is this the right fit for you?
Often a good fit
Owners selling appreciated investment real estate who want to defer gains, move from active management to passive ownership, and can hold an illiquid investment for years.
Estate-minded investors
Investors using exchanges and a step-up in basis as part of a long-term estate plan, coordinated with their CPA and attorney.
Not a fit
Anyone who isn't accredited, needs liquidity or guaranteed income, can't bear the loss of principal, or is looking for a short-term trade. DSTs are speculative and illiquid.
How accreditation is verified
Before you can invest, your accredited status is confirmed as part of the suitability and subscription process — typically through documentation (such as W-2s, tax returns, or a letter from your CPA, attorney, or advisor) or third-party verification, depending on the offering and the exemption used. We also work only with U.S. citizens and permanent residents.
Accreditation, answered
What is an accredited investor?
An accredited investor is a person or entity that meets the SEC's Rule 501 criteria — generally income over $200,000 ($300,000 jointly), net worth over $1,000,000 excluding a primary residence, or certain professional licenses — and is therefore eligible to invest in private placements such as DSTs.
How is my accreditation verified?
Verification happens during the subscription process, through documentation or third-party confirmation depending on the offering. Some offerings (Rule 506(c)) require more formal verification than others.
Can a trust or LLC qualify?
Yes. Certain trusts, LLCs, and family offices qualify — commonly those with more than $5 million in assets, or entities whose equity owners are all accredited. Confirm your entity's status with your advisors.
This page summarizes eligibility and is not legal advice; the full SEC Rule 501 definition controls and your own advisors should confirm your status. Securities offered through Aurora Securities, Inc. (ASI) — CRD #46147, SEC #8-51322 — member FINRA/SIPC. Gerald F. 'Jerry' Baker, III is a registered representative of ASI (FINRA CRD #7537416). Baker 1031 Investments, LLC is independent of ASI and is not a registered broker-dealer or investment adviser. This page is informational only and is not an offer to sell or a solicitation of an offer to buy any security, or tax or legal advice; any offer is made solely through a sponsor's private placement memorandum following a suitability determination. DST and related securities are speculative and illiquid, for accredited investors only, and involve substantial risk including possible loss of principal. Content subject to registered-principal review.