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When most people think of investing, the stock market comes to mind. But the public markets are only one piece of the puzzle. Wealthy families and institutions have long relied on private investments—real estate, credit, and private equity—to build resilient, long-term portfolios.The Difference Between Public and Private Investing Public Markets are accessible to anyone with a brokerage account. They’re liquid and transparent but subject to daily volatility and broad market swings. Private Markets, by contrast, aren’t traded on an exchange. They include investments like apartment communities, private credit funds, or development projects. These tend to have longer time horizons and may provide cash flow or appreciation outside of stock market cycles. Why It Matters for Investors Diversifying into private markets can:Reduce reliance on public stock volatility Provide consistent income streams (like real estate cash flow) Open doors to opportunities typically reserved for accredited investors Who Can Participate? The SEC restricts many private offerings to accredited investors—individuals or entities meeting certain income, net worth, or licensing requirements. This ensures investors have the financial capacity or expertise to evaluate risks in private markets.Our Approach at Summit Horizon Capital We believe in:Clarity — demystifying private investments with straightforward education. Access — connecting investors with opportunities once a relationship is established. Confidence — helping you evaluate risk, returns, and sponsors. Get Started Today The first step is education. Download our free Passive Investor Starter Kit to learn the fundamentals of passive investing and discover if private investments align with your goals.📥 <a data-mce-href="https://summithorizoncapital.com/starter-kit" href="https://summithorizoncapital.com/starter-kit" data-mce-selected="inline-boundary">Download the Starter Kit</a>

Why Private Investing Matters: Beyond Stocks and Bonds

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Introduction: In today’s fast-moving world of finance, it’s easy to get caught up in numbers and returns. But in private investing, relationships matter just as much as the deal itself. At Summit Horizon Capital, we believe the foundation of every great investment begins with trust.Section 1: The Importance of Trust Private investments often involve long timelines, ranging from three to seven years or more. This means investors must trust not only the deal but also the people behind it. A strong relationship between sponsor and investor creates confidence that lasts throughout the life of the investment.Section 2: Why Education Comes First Before investors commit, they need clarity. By focusing on education—through blogs, Starter Kits, webinars, and intro calls—we ensure every investor understands key concepts like preferred returns, equity splits, and risks.Section 3: From Education to Relationship We don’t pitch deals right away. Instead, we get to know investors personally, understand their goals, and ensure they qualify as accredited or sophisticated. This process builds a substantive relationship, which is the only way to responsibly and compliantly share private opportunities.Section 4: Long-Term Partnership Private investing is about more than a single deal. Our goal is to build long-term partnerships where investors feel confident returning again and again as opportunities arise.Conclusion: Strong relationships create strong investments. At Summit Horizon Capital, we put education and trust first—so when the time comes, our investors can make confident, informed decisions.👉 Want to start your journey? Download our free Passive Investor Starter Kit and join the Investor List today.

Why Building Relationships Matters in Private Investing

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Private investments use unique structures and terms that differ from traditional stocks. Knowing these concepts helps you evaluate deals effectively.Preferred Returns The minimum return investors are entitled to before the sponsor receives profits. Example: An 8% preferred return means investors get the first 8% of profits annually.Equity Splits After the preferred return is paid, profits are split between investors and the sponsor. Example: A 70/30 split means investors receive 70%, sponsors receive 30%.Fees and Waterfalls Acquisition Fees – paid to the sponsor for sourcing the deal. Asset Management Fees – for ongoing operations. Waterfall – defines how returns are distributed between investors and sponsors over time. Timelines Most private deals are long-term, ranging from 3–7 years. Some pay quarterly cash flow, while others deliver returns only at exit.Takeaway Understanding these core terms gives you confidence when reviewing investment opportunities.

Key Concepts to Know

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Not everyone can participate in private investments. The SEC limits access to accredited investors to ensure that those who do participate have the financial sophistication and capacity to absorb risks.Who Qualifies? Income Test: $200,000 annual income ($300,000 with spouse) for the last two years with expectation of the same in the current year. Net Worth Test: Net worth over $1 million excluding primary residence. Professional Credentials: Holding Series 7, 65, or 82 licenses qualifies. Entities: Trusts or companies with $5 million+ in assets also qualify. Why Accreditation Exists Private deals don’t go through the same disclosures or regulations as public investments. Accreditation ensures that participants:Understand risks. Can afford potential losses. Have access to advisors and professionals to evaluate deals. How to Verify Accreditation Use a third-party verification service (like VerifyInvestor or Parallel Markets). Provide CPA, attorney, or financial advisor letters. Submit financial statements or tax documents to sponsors. Takeaway If you meet the income, net worth, or license criteria, you may qualify for access to a wide range of private investment opportunities. 👉 Join our Investor List to see if you qualify.

Accredited Investor Basics

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Private investing refers to opportunities that exist outside of the traditional public markets like stocks and bonds. These are deals that are not traded on an exchange but instead are offered directly by sponsors, businesses, or private funds.Types of Private Investments Real Estate Syndications – pooling capital from multiple investors to buy larger properties such as apartment complexes or hotels. Private Equity – buying ownership in private businesses to grow or restructure them. Private Credit – lending capital to businesses or projects outside traditional banking channels. Why Investors Consider Private Deals Diversification – exposure to assets beyond stocks and bonds. Potential Returns – many private deals target higher yields. Direct Ownership – investors often own equity in a specific property or project. Risks to Consider Illiquidity – capital may be tied up for 3–7 years. Less Transparency – fewer reporting requirements than public companies. Higher Risk – success depends heavily on the sponsor and business plan. Takeaway Private investing isn’t for everyone, but it can be a powerful tool for accredited investors looking to diversify and potentially enhance returns. 👉 Download our Passive Investor Starter Kit to learn the fundamentals.

What is Private Investing?

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Private investments are not open to everyone. The SEC created the concept of the accredited investor to ensure that only individuals with sufficient income, net worth, or financial expertise can participate.Key Criteria Income test: $200,000 annual income ($300,000 with spouse) for the past two years. Net worth test: Over $1 million in net worth, excluding primary residence. Professional credentials: Holding a Series 7, 65, or 82 license qualifies. Entity investors: Trusts or companies with $5 million+ in assets also qualify. Why It Matters Accredited investors are considered financially sophisticated and better able to understand the risks of private deals. By limiting access, the SEC provides a safeguard against uninformed or over-leveraged investing.Takeaway If you qualify as accredited, you can access a broader range of opportunities like real estate syndications, venture funds, and private equity.

Summit Horizon Capital

Learn Hub

Why Private Investing Matters: Beyond Stocks and Bonds

Why Building Relationships Matters in Private Investing

Key Concepts to Know

Accredited Investor Basics

What is Private Investing?

What is an Accredited Investor?