Accredited Investor Requirements Explained What Changes Under 506(c)

Accredited Investor Requirements Explained: What Changes Under 506(c)

In last Tuesday’s note, I told you the fund structure is changing—and that after February, participation requires accreditation. 

Today I’ll explain what that means, why we’re doing it, and what stays the same. 

The 506(b) Structure—What We've Used Until Now

Until now, the fund has operated under SEC Rule 506(b). 

That structure: 

  • Limits participant numbers 

  • Requires pre-existing relationships 

  • Prohibits general solicitation or public education 

  • Prioritizes privacy over reach 

It served its purpose. It forced intentional conversations. It kept us small, aligned, and disciplined when that’s exactly what we needed. 

But the same structure that protects in one phase can restrict in another. 

What 506(c) Changes

A 506(c) structure does one thing fundamentally differently: it allows us to speak publicly. 

We can educate openly instead of behind closed doors. We can share how we think, how we evaluate, how we decide.  

What it doesn’t change: 

  • Underwriting standards 

  • Asset criteria 

  • Decision pace 

  • Alignment expectations 

  • Current investor standing

The discipline stays. The conversation opens. 

Why Accreditation Is Required

Under 506(c), only accredited investors can participate. That’s regulatory—not preferential. 

Accreditation means either: 

  • Earning $200,000+ annually (or $300,000 jointly), or 

  • Net worth exceeding $1 million (excluding primary residence) 

I understand this creates a threshold. But here’s what matters: 

This isn’t about exclusion. It’s about building infrastructure that can handle scale responsibly. 

Growth without structure is chaos. Structure without growth is stagnation. 

This balances both. 

If You're Not Yet Accredited

If you’re interested but don’t meet accreditation requirements, you have a small window to participate under the current 506(b) structure. 

Ways to invest include: 

  • Personal capital 

  • Self-directed retirement accounts (I can explain the mechanics) 

  • Contribution of professional services for equity (for qualified trade contractors) 

Afterwards, these options remain available—but only for accredited investors. 

Why I'm Built for This Phase

Expansion is easy to want. Harder to execute. 

Scale amplifies everything—good processes and bad ones. Weak judgment gets expensive fast. 

I’ve spent 30 years: 

  • Identifying assets that work in real markets 

  • Improving them efficiently 

  • Managing through operational reality 

  • Holding through uncertainty 

  • Exiting with intention, not urgency 

I’ve done this with my own capital at risk, through multiple cycles, with full accountability when things went sideways. 

That experience is the foundation. Not the marketing. 

The Real Goal

This isn’t about more deals or faster growth. 

It’s about aligning structure with mission: helping 100 people build lives where choice is the default, not the reward for decades of grinding. 

To do that well, the fund needs a framework that allows education and access at scale—without sacrificing what makes it work. 

That’s what this enables. 

What Comes Next

Over the coming weeks, I’ll share openly: 

  • How we evaluate opportunities 

  • How decisions get made 

  • How we manage risk 

  • How we maintain alignment as we grow 

If this resonates, stay engaged. If it doesn’t, that clarity serves you too. 

The goal has never been to appeal to everyone. 

The goal is to do this well—and create lasting impact for the people it’s meant to serve. 

Next week: Why restraint and expansion aren’t opposites—and why knowing when to shift is one of the most underrated skills in building durable wealth. 

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