Can You Invest in Apartment Deals If You're Not an Accredited Investor?
Yes, but not in every apartment deal. Rule 506(c) syndications are accredited-only, while Rule 506(b) allows up to 35 non-accredited buyers who meet a sophistication test. Regulation Crowdfunding, Regulation A Tier 2 and REITs are also open, with limits that depend on the offering.
If you are the sponsor deciding who can come into your raise, we built DoorRaise to run it under Rule 506(b) or 506(c). This guide is for the investor, so it stays on one question: where can you invest today?
Where non-accredited investors can go
Non-accredited investors can use REITs, certain platform funds, Regulation Crowdfunding, Regulation A Tier 2 or a limited number of spots in a Rule 506(b) deal. The right door depends on the offering, not on you alone.
| Route | Open to non-accredited? | What to know |
|---|---|---|
| Rule 506(c) syndication | No | Every purchaser must be accredited and verified |
| Rule 506(b) syndication | Up to 35 in any 90 days, if sophisticated | No general solicitation; extra disclosure required |
| Regulation Crowdfunding | Yes, with per-investor limits | Sold through an intermediary; $5 million per issuer in 12 months |
| Regulation A Tier 2 | Yes, generally up to 10% of the greater of income or net worth | Not applied to securities listed on an exchange; $75 million cap |
| REITs and funds | Often yes | Depends on whether the REIT or fund is publicly offered |
This sits inside our complete guide to real estate syndication. New to the whole topic? Start with how to invest in apartment buildings as a beginner.
Who counts as accredited?
You are an accredited investor if you meet one of the tests in Rule 501(a). For most people that means income, net worth, or a qualifying professional credential.
- Income: over $200,000 individually, or over $300,000 jointly with a spouse or spousal equivalent, in each of the two most recent years, with a reasonable expectation of the same this year.
- Net worth: over $1,000,000, alone or with a spouse or spousal equivalent, excluding your primary residence (with special treatment for mortgage debt on it).
- Credential: a professional certification the SEC has designated by order. Check the SEC's current list instead of assuming a license qualifies.
The SEC published a notice dated September 30, 2026 asking for public comment on whether to designate passage of a FINRA-developed exam as a qualifying credential. That is a request for comment, not a rule, so do not plan around it. Our accredited investor definition guide tracks the tests.
Rule 506(b): the narrow door
Rule 506(b) allows no more than 35 non-accredited purchasers in any 90 calendar days, and each one must have enough knowledge and experience to evaluate the investment, alone or with a purchaser representative. That is the text of Rule 506(b). Accredited investors do not count toward the 35.
What the sponsor must give you
If a sponsor sells to even one non-accredited purchaser under 506(b), Rule 502(b) requires specified information a reasonable time before the sale. That includes financial statements, and the opportunity to ask questions and get answers about the terms. Accredited investors are not entitled to the same 502(b) package, which is one reason many sponsors choose accredited-only raises.
Why a sponsor may say no
Many sponsors decline non-accredited investors because of the extra disclosure, the sophistication judgment and the legal risk of getting either wrong. That is a business decision, not a verdict on you. The SEC's private placement bulletin on Investor.gov also notes that purchaser representatives can have conflicts of interest, so check who is advising you.
How you would even find one
Rule 506(b) prohibits general solicitation, so a sponsor generally approaches people they already know rather than advertising to strangers. If a deal is advertised publicly, it is probably a 506(c) offering that only accepts accredited investors. Our post on followers and the substantive relationship question explains the line, and non-accredited followers covers the sponsor's side.
Regulation Crowdfunding and Regulation A
Regulation Crowdfunding and Regulation A Tier 2 let non-accredited investors in, but they cap what you can put in. The limits protect investors and apply to you, not the sponsor.
Regulation Crowdfunding (Reg CF)
Under 17 CFR 227.100, an issuer can sell up to $5,000,000 in any 12-month period, and the offering must run through an intermediary's platform. For a non-accredited investor, the rule text I reviewed sets two tiers.
- If your income or your net worth is below $124,000, your limit is the greater of $2,500 or 5% of the greater of your income or net worth.
- If both are at or above $124,000, your limit is 10% of the greater of the two, capped at $124,000.
Dollar thresholds in securities rules can be adjusted, so confirm the current figures on the platform and in the rule. See also our guide to Regulation Crowdfunding for real estate.
Regulation A Tier 2
17 CFR 230.251 sets a Tier 2 offering ceiling of $75,000,000. Unless you are accredited, your purchase generally cannot exceed 10% of the greater of your annual income or net worth, and that limit does not apply to securities listed on a national exchange upon qualification. Confirm the details in the specific offering circular.
Worked example: what the limits mean in dollars
The figures below are illustrative, not offers, and the formulas come from the rules above. They show how quickly the caps bite. All three investors are assumed to be non-accredited.
| Investor | Annual income | Net worth | Reg CF limit | Reg A Tier 2 limit |
|---|---|---|---|---|
| A | $60,000 | $90,000 | $4,500 | $9,000 |
| B | $150,000 | $300,000 | $30,000 | $30,000 |
| C | $80,000 | $250,000 | $12,500 | $25,000 |
Investor A has income and net worth under $124,000, so the Reg CF limit is the greater of $2,500 or 5% of $90,000, which is $4,500. Reg A Tier 2 allows 10% of the greater figure, or $9,000. Investor B has both figures above $124,000, so Reg CF allows 10% of $300,000, or $30,000, well under the $124,000 cap.
Investor C is the instructive case. Income of $80,000 is under $124,000, so the lower Reg CF tier applies: 5% of $250,000 is $12,500.
Reg A Tier 2 has no such tier, so 10% of $250,000 gives $25,000. Always run the exact test with your own numbers on the platform.
REITs and other public options
A REIT is the most accessible way for a non-accredited investor to own apartment exposure. Publicly traded REITs are SEC-registered and exchange-listed, so you can buy and sell them like a stock, as the Investor.gov REIT bulletin describes.
Non-traded REITs are also SEC-registered but have no readily available price, limited redemption and often high up-front costs.
Private REITs are generally limited to accredited investors. For a side-by-side with other routes, see syndication vs. REIT vs. owning a building.
Could you become accredited?
Possibly, if your income or net worth crosses the Rule 501 line, or if you hold a qualifying credential. Do not stretch your numbers. A 506(c) sponsor must take reasonable steps to verify, and verification asks for documents.
For income, that can mean IRS forms for the two most recent years. For net worth, it can mean bank and brokerage statements and a consumer credit report.
A written confirmation from a registered broker-dealer, SEC-registered investment adviser, licensed attorney or CPA is another listed route. See our guide to accredited investor verification.
Our take
Our take: being non-accredited is not a reason to chase a risky deal that lets you in. If the only sponsor willing to take your money is one that skips the questions an accredited-only sponsor must answer, treat that as a red flag instead of an opportunity.
For sponsors, we think the cleaner path for a first raise is usually accredited-only, because it avoids the 502(b) disclosure package and the sophistication judgment. That is an opinion, not legal advice. Your securities attorney should decide with you.
Trade-offs and who this is not for
Each open door has a cost. Reg CF and Reg A limit your check size, 506(b) spots are scarce and depend on a sponsor's choice, and REITs give you no say in the properties.
This guide is not for anyone who would borrow to qualify or to invest.
Do not take on debt to buy into a private deal, and do not invest money you may need in the next several years. Private placements are illiquid, and as the SEC bulletin puts it, you should be prepared to lose all of your investment.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5+ units under Rule 506(b) or 506(c), and runs accreditation checks on every investor as part of setup. Whether a 506(b) raise includes any non-accredited investors is a decision for the sponsor and the sponsor's attorney. We are software, legal document preparation, escrow coordination and verification services, not a law firm, broker-dealer, investment adviser, funding portal, bank or escrow agent, and we give no legal advice.
We charge 0% of the raise or profits, with three flat fees.
At setup, $500 forms the deal's LLC (including the registered agent), prepares investor documents from attorney-approved templates, opens an escrow account in the deal's name, builds the deal page and live call sign-up, and runs accreditation checks on every investor. At closing, $5,000 is paid from the funds raised, only if the deal closes. Then $3,500 a year is paid from the property's income. State filing fees are included in the $5,000 closing fee. Investors never receive a bill from us, and if a raise does not close, every investor gets their money back from escrow.
Ready to raise? Create your free sponsor page or see pricing.
FAQ
Can I invest in an apartment syndication if I'm not accredited?
Sometimes. Rule 506(c) deals cannot take you. A Rule 506(b) deal can accept up to 35 non-accredited purchasers in any 90 days if each is sophisticated, but the sponsor must choose to allow it and provide extra disclosure.
Does my spouse's income count?
For the income test, joint income over $300,000 with a spouse or spousal equivalent can qualify. For net worth, joint net worth over $1,000,000 can qualify. Rule 501 sets the details, and documentation can require both spouses.
Can I self-certify that I'm accredited?
Not in a Rule 506(c) deal, where the sponsor must take reasonable steps to verify. In a 506(b) deal, sponsors commonly use a questionnaire, so expect questions about your status and experience.
Is it okay to start with a REIT or platform fund?
Many beginners do. Read the offering documents and understand the fees, redemption limits and who runs the fund before you invest.
Why would a sponsor turn down a non-accredited investor?
Extra required disclosure, the sophistication judgment and legal risk. It is usually about the deal's structure, not about you personally.
Will the accredited investor rules change?
The SEC has asked for public comment on a possible exam-based credential, but that is a request for comment, not a rule. Confirm current rules with a securities attorney.
Sources
- 17 CFR 230.501: Definitions, including accredited investor (Cornell LII)
- 17 CFR 230.502: General conditions to be met (Cornell LII)
- 17 CFR 230.506: Exemption for limited offers and sales (Cornell LII)
- 17 CFR 227.100: Crowdfunding exemption and requirements (Cornell LII)
- 17 CFR 230.251: Regulation A scope and conditions (Cornell LII)
- Investor.gov: Investor Bulletin, Private Placements Under Regulation D
- Investor.gov: Investor Bulletin, Publicly Traded REITs
The investor limits in the example are simplified illustrations of the formulas in the rules, not advice about your eligibility. This article is general information as of October 2026, not legal, tax or investment advice. Talk to a securities attorney and a CPA about your deal. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.