In the world of real estate investing, you will frequently hear the term "accredited investor." It is often used as a gatekeeper phrase, separating public investment opportunities from private, exclusive deals. However, many successful professionals, business owners, and seasoned investors are unaware that they actually meet the criteria to qualify for this status—and are missing out on the opportunities it unlocks.

At Fresh Coast Investments, a significant portion of our $47 million portfolio is funded by accredited investors who leverage our private lending and co-ownership structures. If you are looking to move beyond standard retail investing and access professionally managed, high-yield real estate, understanding this designation is your first step.

The Definition of an Accredited Investor

In Canada, securities regulations (specifically National Instrument 45-106) dictate who can invest in private market opportunities. The rules exist to ensure that individuals participating in these investments have the financial capacity to bear the associated risks without requiring the extensive, public disclosures mandated for retail stocks or mutual funds.

You qualify as an accredited investor in Canada if you meet at least one of the following financial thresholds:

The Income Test

If your personal net income before taxes exceeded $200,000 in each of the two most recent calendar years, and you reasonably expect to exceed that level in the current calendar year, you qualify. Alternatively, if your combined net income with a spouse exceeded $300,000 in each of the last two years, with the expectation of maintaining that level, you also meet the criteria.

The Financial Asset Test

If you, either alone or with a spouse, beneficially own financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000, you qualify. It is important to note that "financial assets" typically refer to cash, securities, and similar liquid investments, rather than the equity in your primary residence.

The Net Asset Test

If your total net assets—meaning everything you own (including real estate and your primary residence) minus everything you owe (mortgages, debts)—exceed $5,000,000, you qualify as an accredited investor.

Why the Designation Matters

Qualifying as an accredited investor changes the landscape of your investment options. Retail investors are largely restricted to publicly traded REITs, mutual funds, or buying and managing individual rental properties themselves. Accredited investors, on the other hand, gain access to the exempt market.

In the context of real estate, this means you can participate directly in private portfolios, syndications, and structured lending agreements that are not available to the general public. These private opportunities often offer superior returns, lower correlation to public stock market volatility, and access to asset classes—like large-scale furnished residential portfolios—that are difficult to replicate on your own.

How Fresh Coast Works with Accredited Investors

At Fresh Coast Investments, we offer accredited investors direct access to our proven Grande Prairie real estate portfolio. We operate two primary structures for accredited capital: promissory notes and property co-ownership.

For investors seeking fixed, predictable income, our promissory note structure allows you to act as a private lender. Your capital is secured against real Alberta property, and you receive a fixed return paid monthly or quarterly, with your full principal returned at the end of the term. It is a completely passive, hands-free income stream.

For those focused on long-term wealth creation, our co-ownership structure allows you to take an equity stake in a specific property alongside Aaron and our team. You share in the monthly cash flow and participate in the long-term equity growth as the property appreciates, while we handle 100 percent of the management and operations.

Taking the Next Step

If you meet the income or asset thresholds outlined above, you have access to a different tier of real estate investing. You do not need to be a landlord to build a substantial real estate portfolio; you just need to align your capital with an operator who has the track record and the infrastructure to execute.

If you are an accredited investor ready to deploy capital seriously, we invite you to review our current opportunities.



Ready to put your capital to work? Book a call with Aaron today.