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Yeah, typically you have to make at least $200k/year or have a net worth of $500k (the term is "accredited investor").

Thanks to a new law, though, you no longer have to be accredited to invest small amounts.




I believe it's net worth of a million dollars (http://www.investor.gov/news-alerts/investor-bulletins/inves...). I've been following the crowdfunding legislation and it seems like there may be additional requirements to accept such investments if you are an early startup with just friends & family investments.

But the bottom line, I think, is that to do the strategy you suggest, you currently need to be an accredited investor if the startup is not already setup for crowdfunding.


Excluding primary residence :)




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