Quick Take: Accredited investor verification is how private investment funds confirm that an investor meets the SEC’s income, net worth, or professional criteria before allowing participation. At Origin Investments, verification requires forwarding a certification form to a licensed attorney, CPA, or financial advisor — or using a third-party verification service — who reviews your financial status and completes the form on your behalf. Once verified, investors can access Origin’s private real estate funds and other securities not available to the general public.
What Is an Accredited Investor?
An accredited investor is an individual or entity that meets specific financial or professional qualifications established by the SEC under Rule 501(a) of Regulation D. These standards exist to help ensure that participants in private investment offerings have the financial capacity and sophistication appropriate for the risks involved.
To qualify as an accredited investor, an individual must meet at least one of the following criteria:
- Individual net worth, or joint net worth with a spouse or spousal equivalent, exceeding $1 million — excluding the equity in a primary residence
- Individual income exceeding $200,000 in each of the past two years, with a reasonable expectation of the same in the current year
- Combined income with a spouse exceeding $300,000 in each of the past two years, with a reasonable expectation of the same in the current year
- Holding an active Series 7, Series 65, or Series 82 securities license in good standing
Certain entities can also qualify, including:
- Corporations, partnerships, LLCs, and certain trusts with more than $5 million in assets — provided they were not formed for the specific purpose of acquiring the securities offered
- Entities in which all equity owners are themselves accredited investors
- Family offices with at least $5 million in assets under management, and their family clients
The SEC’s 2020 amendments expanded the definition to include the categories noted above — recognizing that financial sophistication is not measured by wealth alone. The 2020 update remains the most recent substantive change to the definition. Investors should verify current thresholds directly at sec.gov or with a licensed financial professional, as these standards are subject to regulatory change.
What Is the Accredited Investor Verification Process?
When a private investment fund raises capital under SEC Regulation D, it is required to confirm that each investor qualifies as an accredited investor before allowing participation. This confirmation process is called accredited investor verification.
Private investments often carry higher risk, lower liquidity, and less regulatory oversight than publicly traded securities. Verification helps ensure that each investor is appropriately qualified for the risk level associated with a given fund.
Which Origin Funds Require Accredited Investor Status?
At Origin Investments, qualification requirements vary by offering. The following offerings are structured as private placements under Regulation D and require accredited investor status:
| Offerings | Qualification Required |
|---|---|
| IncomePlus Fund | Accredited investor |
| QOZ Program | Accredited investor |
| Origin Exchange | Accredited investor |
| Individual Deals | Accredited investor |
How Does the Accredited Investor Verification Process Work at Origin?
Origin’s verification process is designed to be straightforward. Here is how it works, step by step:
Step 1: Receive Origin’s Certification Form
To invest in an Origin fund, you must qualify as an accredited investor under Rule 501(a) of Regulation D. Origin provides a certification form that documents this qualification. This form is specific to the entity making the investment — not just the individual.
Step 2: Choose Your Verification Method
Investors have two options for completing verification:
- Licensed professional: Forward Origin’s certification form to a licensed attorney, CPA, or financial advisor who is familiar with your financial situation. That professional completes and signs the form on your behalf — you do not need to share raw financial documents with Origin directly.
- Third-party verification service: Use an accredited investor verification service, which reviews your documents and issues a verification certificate accepted by Origin and most other private fund managers. Origin does not endorse any specific third-party service; your financial advisor or attorney can help identify an appropriate provider.
A mismatch between the investing entity and the name on the certification form is one of the most common causes of verification delays. Confirming this detail before submission will keep the process on track.
Step 3: Match the Form to the Investing Entity
The certification form must be completed for the specific entity making the investment — a detail investors sometimes overlook.
- If you are investing as an individual named John Smith, the form must refer to you as “John Smith.”
- If you are investing through an LLC called John Smith Investments LLC, the form must state “John Smith Investments LLC.”
A mismatch between the investing entity and the name on the certification form is one of the most common causes of verification delays. Confirming this detail before submission will keep the process on track.
Step 4: Submit and Receive Confirmation
Once the completed form is returned and reviewed, Origin confirms your verified status. At that point, you are cleared to proceed with your investment.
What Documents Do Accredited Investors Typically Need?
Because Origin’s process routes verification through a licensed professional or third-party service, investors do not always need to prepare a specific document package themselves. However, your CPA, attorney, or financial advisor will likely need access to one or more of the following to complete the form accurately:
| Qualification Basis | Documents Typically Referenced |
|---|---|
| Income (individual) | W-2s, 1099s, or tax returns for the past two years |
| Income (joint) | Same as above, plus documentation of spousal relationship |
| Net worth | Brokerage/bank statements, mortgage statement (to exclude primary residence value) |
| Entity qualification | Entity formation documents, asset statements, or evidence that all equity owners are accredited |
| Third-party service | Varies by provider — typically tax returns and/or financial statements |
How Long Does the Verification Process Take?
Most investors complete verification within one to three business days when documents and the certification form are submitted promptly. Third-party services typically process certificates within 24 to 48 hours. The most common source of delay is document gathering or scheduling time with a professional — not the review itself.
If you are investing near a fund’s closing deadline, beginning the verification process at least one to two weeks in advance is advisable.
Why This Matters for Real Estate Investors
For investors interested in private multifamily real estate, accredited investor verification is the gateway to participation. Funds structured as private placements under Regulation D are not available on public exchanges — they are offered exclusively to investors who have completed verification.
Understanding this process is relevant for several reasons:
- Risk awareness: Private real estate funds carry illiquidity risk and are not subject to the same disclosure requirements as public securities. Investors may not be able to redeem or transfer their interests on demand, and there is no guarantee of return of capital. The accredited investor standard helps ensure participants are appropriately positioned for this risk profile.
- Access: Institutional-quality real estate investments — such as diversified multifamily funds — are typically only accessible to verified accredited investors.
- Timing: Many private funds have limited offering windows and capital raise deadlines. Having verification completed in advance allows investors to act when an opportunity aligns with their goals.
- Entity structure: Investors who hold assets through LLCs, trusts, or other entities need to ensure their certification form reflects the correct investing entity — a detail that can affect both eligibility and the verification timeline.
Origin Investments requires accredited investor status to participate in its private multifamily real estate funds, including the IncomePlus Fund, Origin Exchange, and individual deals. Origin’s investor relations team can walk prospective investors through the specific verification requirements for each offering.
There is a private real estate investment strategy for virtually every investor.
FAQ
What is the accredited investor verification process?
The accredited investor verification process is how private investment funds confirm that an investor meets the SEC’s income, net worth, or professional qualifications before allowing participation in a private offering. It typically involves forwarding a fund’s certification form to a licensed attorney, CPA, or financial advisor — or using a third-party verification service — who reviews your status and completes the form on your behalf.
How do I verify my accredited investor status for an Origin fund?
Origin provides a certification form that must be completed by a licensed attorney, CPA, or financial advisor who is familiar with your financial situation — or through an accredited investor verification service. The form must be completed in the name of the specific entity making the investment, whether that is an individual or an LLC.
How long does accredited investor verification take?
Verification typically takes one to three business days once the certification form and any required documents are submitted. Third-party services often process certificates within 24 to 48 hours. Beginning the process at least one to two weeks before a fund’s closing deadline is advisable.
