Frequently Asked Questions
How are your investment structured?
Accelor Capital adheres to the 506 (b) or 506 (c) Rules of Regulation D, Section 4(a)(2) in the Securities Act of 1933. Depending on the investment opportunity.
What is Rule 506 (b)
Rule 506(b) is a safe harbor provision under Regulation D that allows issuers to raise an unlimited amount of capital from an unlimited number of accredited investors and up to 35 non-accredited but sophisticated investors without registering the offering with the SEC. This exemption falls under Section 4(a)(2) of the Securities Act, which exempts transactions by an issuer not involving any public offering. The Section 4(a)(2) exemption is the statutory basis for private placements. Under the 506 (b) rule, the investor must have a relationship with the issuer prior to investing in an issuer’s private placement offering.
What is Rule 506 (c)
Under the 506 (c) Rule, the issuers may only work with accredited investors. Furthermore, the issuer must take reasonable steps to verify the accredited status of an investor before they can engage in a transaction. This may include reviewing their proof of income and asset statements. Along with receiving an attestation of the investor’s accredited status.
What is a sophisticated Investor?
A sophisticated investor is a person who has the capital, experience, and net worth and is expected to be capable of evaluating the potential benefits and risks of a minimally regulated investment. While the term “sophisticated investor” is not considered an official term per se, these people are characterized by the SEC as having “sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.”
What is an Accredited Investor?
An accredited investor is an individual with a net worth exceeding $1 million — excluding the value of their primary residence. People with an annual income of $200K for two consecutive years and the expectation of continued earnings at that level are also considered accredited. Married couples earning $300k annually, within the same parameters, also qualify as accredited investors. Institutions with assets exceeding $5 million are considered accredited as well.
Financial Disclosure Statement
Accelor Capital, LLC is a private real estate investment company that connects accredited and sophisticated investors with multifamily real estate opportunities. We are not a registered broker-dealer, investment advisor, tax advisor, or legal advisor. The information provided by Accelor Capital, LLC, its affiliates, or representatives is for educational and informational purposes only and should not be considered as financial, investment, legal, or tax advice.
Any investment opportunities presented by Accelor Capital, LLC are offered in compliance with SEC Regulation D, Rule 506(b) and 506(c) and are available only to accredited investors, as defined by the Securities and Exchange Commission (SEC), and in some cases, sophisticated non-accredited investors as permitted under 506(b). All investments carry inherent risks, including but not limited to loss of principal, changes in market conditions, and liquidity risks. Past performance is not indicative of future results, and no guarantees are made regarding investment performance or income projections.
Investors should conduct their own due diligence and consult with their own registered financial advisors, tax professionals, attorneys, and other trusted professionals before making any investment decisions. Participation in any investment opportunity is subject to the terms, conditions, and disclosures outlined in the applicable Private Placement Memorandum (PPM) and other offering documents. By engaging with Accelor Capital, LLC, investors acknowledge and accept full responsibility for their own investment decisions.