A knowledge-based test for accredited investors, one of the changes under consideration in March 2026, could widen who can join real estate syndications, Relli co-founder and COO Ross Iannarelli said in an article published on SourceFed on March 12, 2026. He explains why the current wealth-based definition misses some sophisticated investors, and what operators and platforms would need if the pool of eligible investors grows. The full article is below, followed by a plain explainer of who counts as an accredited investor and answers to common questions.
Editor's note: first published March 2026, so some details may have changed. Today Relli is a marketplace where investors review offerings from reviewed sponsors, express interest and talk to each sponsor directly. Each offering page shows its own minimum, and the sponsor confirms each investor's accredited status before they invest.
Key takeaways
- The accredited investor definition rests on income or net worth, which the article argues misses sophisticated people below those thresholds.
- A knowledge-based test, described in the article as under consideration, would shift eligibility from wealth to demonstrated competency.
- Iannarelli expects operators could keep higher entry points and still reach a much larger pool of eligible investors.
- Operators reaching hundreds of investors need scalable communication systems, and the article argues they should build them before any rule change takes effect.
By King Newswire, SourceFed. Originally published March 12, 2026.
Relli’s COO explains why regulatory changes around accredited investor definitions will fundamentally alter who can access private real estate deals.
United States, 12th Mar 2026 – The definition of an accredited investor has remained relatively stable for years: individuals earning over $200,000 annually, $300,000 combined with a spouse, or possessing $1 million in assets excluding primary residence. But changes are under consideration that could dramatically expand the pool of individuals eligible to participate in real estate syndications.
“Right now there’s a few criteria,” says Ross Iannarelli, Co-founder and COO of Relli. “It’s in the judicial system right now where you can take an exam, kind of like a test, a questionnaire. It’s kind of what they want to do to say if you pass this, that you are an intelligent enough individual to make a smart decision with your money.”
Why This Matters
The current accredited investor framework assumes wealth correlates with investment sophistication. A high earner or someone with substantial assets presumably understands risk and can afford losses. But this misses many sophisticated individuals who don’t meet arbitrary income thresholds.
A knowledge-based test would fundamentally shift access from wealth-based to competency-based. Someone earning $150,000 who deeply understands real estate finance could potentially qualify, while someone earning $250,000 with no investment knowledge might not.
“That alone is going to let people access a lot of different private markets, whether it be private companies that are yet to IPO,” Iannarelli notes. “For real estate, it’s going to allow us to take a lot of these opportunities and make them available to a much broader audience.”
The regulatory change wouldn’t necessarily push entry points down to retail levels. Operators could maintain $5,000 or higher thresholds while still reaching a significantly larger pool of potential participants. The constraint isn’t transaction size but eligibility criteria.
The Operator Perspective
For real estate operators, the change creates both opportunity and challenge. The opportunity comes from reaching individuals who previously couldn’t participate regardless of interest or sophistication. The challenge comes from needing systems to manage larger participant bases.
“Maybe you don’t go full retail, you stay accredited, make the entry point $5,000 or something like that,” Iannarelli explains. “You’re still going to find an even larger market of people that are interested in real estate at that price point and want to get involved.”
Operators managing relationships with 50 or 100 participants can handle individual communication. Operators targeting 500 or 1,000 participants need automated systems, consistent messaging, and scalable processes. The infrastructure requirements differ dramatically.
This creates competitive separation. Operators who build proper systems before regulatory changes take effect will be positioned advantageously. Those waiting to see what happens will need to develop infrastructure quickly once the market expands.
The Platform Consideration
Digital platforms like Relli have built infrastructure to onboard, verify, educate, and connect thousands of individuals with multiple operators. Adding an exam-based qualification layer could integrate into existing verification processes.
“Giving people something that’s a little bit more tangible is going to be important,” Iannarelli says. “We’re seeing regulatory things change where they want to open up what is an accredited investor.”
The timing aligns with broader democratization trends across investment markets. Cryptocurrency exchanges, fractional stock ownership, and alternative investment platforms all moved toward accessibility over the past decade. Real estate syndications represent one of the last major asset classes maintaining strict wealth-based access restrictions.
What Operators Should Consider
Waiting for regulatory changes to finalize before building infrastructure means starting from behind. Operators could consider developing participant communication systems, automated nurturing processes, and scalable relationship management approaches now.
“I think anytime you give people a way to participate in a way that provides more transparency is important,” Iannarelli reflects. “All of us grew up knowing that real estate is one of the best investments, but it’s one of the few investments that has the least amount of education as far as what am I looking for and where do I even look.”
If and when the regulatory framework changes, the question for operators will be whether they prepared before or after competitors developed systems to reach the newly eligible market.
To learn more about Relli’s platform, visit www.relli.co
Disclaimer: This article is for informational purposes only and does not constitute investment advice or legal guidance. Real Estate Today and the author cannot be held responsible for decisions made based on this content. Readers should conduct their own research and consult with qualified financial and legal advisors before making any decisions.
Who counts as an accredited investor (added October 19, 2026)
The article looks ahead to a possible change. Here is where things stand on Relli, and what the article itself says is still open.
The general definition
Relli's How it works page puts it this way: in general, an individual with income above $200,000 (or $300,000 with a spouse or partner) in each of the last two years, or a net worth above $1 million not counting a primary home. Certain licensed professionals also qualify. The sponsor confirms your status before you invest.
What the article says could change
- The article describes a knowledge-based test (an exam or questionnaire) as a change under consideration in March 2026, not as a rule in force.
- If adopted, the article says, it could let people qualify by showing they understand the investment, rather than by income or net worth alone.
- The article also expects operators might keep accredited-only offerings with lower entry points. That is a prediction, not a description of any current offering.
How eligibility works on Relli today
- Most offerings are for accredited investors. Each offering page shows who can invest.
- The short Express Interest form asks how much you may invest and whether you are accredited.
- Expressing interest commits you to nothing. Nothing is binding until you sign the sponsor's subscription documents.
- The sponsor confirms eligibility with you before you invest.
How Relli works today
Relli reviews and underwrites every sponsor before they list (background checks, track record, financials and offering structure) and turns some away. Investors browse every open offering, compare them side by side and talk to the sponsor directly before deciding. Investors pay Relli nothing today; sponsors pay to list.
Common questions
What is an accredited investor?
In general, an individual with income above $200,000 (or $300,000 with a spouse or partner) in each of the last two years, or a net worth above $1 million not counting a primary home. Certain licensed professionals also qualify. The sponsor confirms your status before you invest.
Has the accredited investor definition changed?
The article, published in March 2026, describes a knowledge-based test as under consideration, not adopted. Ask the sponsor which standard applies to their offering.
Do I have to be accredited to invest in an offering listed on Relli?
Most offerings are for accredited investors. Each offering page shows who can invest, and the sponsor confirms eligibility with you before you invest.
Who checks my accredited status?
The sponsor of each offering confirms your status before you invest. Expressing interest on Relli does not commit you to anything.
Can I lose money?
Yes. Private real estate is illiquid, target returns are projections, not guarantees, and you can lose some or all of your investment.
Originally published
- SourceFed, March 12, 2026
