# Who Can Actually Invest in Private Deals?

Hear the term "accredited investor" thrown around a lot? Here's the real deal: it's basically the SEC's way of saying "you're rich enough to gamble on high-risk stuff like hedge funds and venture capital."

**The two paths to get in:**

1. **Show me the money** — Made $200k/year solo or $300k+ combined with spouse for the past 2 years, and expecting the same this year? ✓
2. **Net worth flex** — Got $1M+ in assets (not counting your house)? ✓

Catch: You gotta pick ONE method and stick with it across all three years. Mix-and-match doesn't work — that's a common L.

**Real talk:** Companies selling these private securities will dig through your W-2s, tax returns, bank statements, the whole thing. It's not just a checkbox; they're legally required to verify you're legit.

**Why the gatekeeping?** The logic is: if you've got serious money, you can afford to lose on risky bets that regular retail investors can't touch. Whether that makes sense is another conversation.

Bottom line: Accredited investor = permission slip to enter the private investment club. But first, you gotta prove you belong there.