Accredited Investor
TIC offerings are generally available only to "Accredited Investors". The Securities Act of 1933 defines the term "Accredited Investor" in Rule 501 of Regulation D as:
- A natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase
- A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year
- A bank, insurance company, registered investment company, business development company, or small business investment company
- An employee benefit plan, as defined by the Employee Retirement Income Security Act of 1974 (ERISA), if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million
- A charitable organization, corporation, or partnership with assets exceeding $5 million
- A director, executive officer, or general partner of the company selling the securities
- A business in which all the equity owners are accredited investors; or
- A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
TIC properties are considered "Private Placement" offerings and are regulated in accordance with Regulation D under the Securities Act of 1933. Accordingly, participation in these programs requires that investors be "accredited" in accordance with the above definitions.
