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Guest-5ty5s4
Guest
Depends where you live. In Pennsylvania, your home is f*cked in Bankruptcy.
Banks don't give a F*ck about where you're living. Their 'net worth' calculations are designed to make you feel richer than you are so you'll leverage yourself more aggressively and take bigger risks. They just want to know what they can pillage if things goes south.
In Texas, your home is protected by homestead laws, and there is no limit.
And again, if you apply for certain loan types, this primary residence equity does factor into your net worth and will increase the loan size. Because it increase the amount of capital you can draw on in the form of HELOCs and things like that.
If you have a $1,000,000 home, paid off in cash, yes, that is a significant asset you could leverage if you needed some money.
It's strange to pick the accredited investor rules as a way to define what is and is not an asset. Even your car(s) are assets. The computer you are using is an asset. Those would fall under personal property. Your home is real property, just like the building your business uses, or a rental property, whether in your name or the name of a business entity you own shares of.
I don't really care about being an accredited investor unless it's a way to keep score. Being an LP to someone's fund or syndication is slowlane, unless it's part of your broader investment picture.
You need to be accredited to buy into Grant Cardone's fund. But guess what? Grant Cardone is the fastlaner. He's the guy borrowing off of his multi-million dollar condo, his primary residence, to put up some money into his own fund to make fastlane returns from AUM and all his LP's.
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