Last month Ryan provided this great rundown of marketplace lending investment options for non-accredited investors. Today, we will do the same thing but provide some options for accredited investors.
Before we get started let’s get clear on the definition of an accredited investor. This is from the SEC’s investor website:
An accredited investor includes anyone who:
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
If you fit that description then you have many more investment options available to you. In this article I am going to run through ten different options across the three asset classes of real estate, small business loans and consumer loans. I am excluding Lending Club and Prosper from this review even though as an accredited investor you also have access to these platforms. They were covered in Ryan’s post mentioned above. Also, I am not covering any funds or aggregator sites – these are all platforms that originate their own loans.
I should also point out that this article is for information purposes only. I am not providing investment advice here nor am I recommending any of these investments.
There are more real estate options than any other category. Real estate is the largest asset class by far and one that has attracted a wide range of individual investors for many decades. So, it is not surprising that when it comes to marketplace lending it is leading the way as far as investor options go.
- LendingHome (https://www.lendinghome.com/)