{"id":336,"date":"2014-01-22T12:47:35","date_gmt":"2014-01-22T17:47:35","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=336"},"modified":"2020-03-18T14:31:55","modified_gmt":"2020-03-18T18:31:55","slug":"calculate-net-worth","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/calculate-net-worth\/","title":{"rendered":"Calculating the Net Worth of Accredited Investors"},"content":{"rendered":"
The SEC has strict rules for who can be considered an Accredited Investor<\/a>. \u00a0Issuers of private offerings are typically required to only accept investment dollars from an accredited investor which makes understanding the rules extremely important. \u00a0The SEC recently lifted the ban on general solicitation, allowing companies to advertise but only if the company does not accept any capital from a non accredited investor.<\/p>\n Accredited Investor Definition<\/strong><\/p>\n On the SEC website<\/a> they detail who is an Accredited Investor, stating the following:<\/p>\n Issuers need to understand how the SEC calculates the net worth portion of the requirements. \u00a0There are some lesser known rules that make the process more complicated than it initially appears to be.<\/p>\n For example, their primary residence cannot be included in the net worth calculation. \u00a0The liability (mortgage) associated with the property is also not included. \u00a0There is, however, a rule that if the debt on that property increased within the past sixty days the additional debt must be deducted from their net worth. \u00a0Also if the debt on the property is greater than its value, that amount must also be deducted from their net worth.<\/p>\n To calculate their net worth have an investor list out all of their assets (bank balances, portfolio, other property etc) in one column and list out their debts in another column. \u00a0Ask them to include their primary residence and mortgage so you can determine if the home is underwater. Ask the investor if they have increased their mortgage debt in the past sixty days.<\/p>\n If the investor’s home has positive equity, and they have not recently increased their mortgage debt, the calculation is fairly simple. \u00a0Add the total of their other assets and the total of their non mortgage debt. \u00a0Deduct the debt from the assets to get their total net worth. \u00a0Remember, that if they owe more than there home is worth the amount above the fair market value must be added to the debt column.<\/p>\n If you are relying on investors to fill out their own net worth documents include a question asking about their home’s value and mortgage. \u00a0For example, you could ask “Do you owe more on your home than the current market value?” and “Have you increased your mortgage liability in the past 60 days”. \u00a0If the answer is yes, direct them to speak with you so you can assist in the final net worth calculations.<\/p>\n The SEC has strict rules for who can be considered an Accredited Investor. \u00a0Issuers of private offerings are typically required to only accept investment dollars from an accredited investor which makes understanding the rules extremely important. \u00a0The SEC recently lifted the ban on general solicitation, allowing companies to advertise but only if the company does<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[63],"tags":[],"yoast_head":"\n\n
\n
<\/a><\/h3>\n
Calculating Net Worth<\/strong><\/h3>\n
For more information please visit our mother site at<\/b> Salesleads.tv<\/b><\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"