What is Net Worth?

For purposes of investor accreditation and qualification, “net worth” means the excess of total assets at fair market value (excluding the value of the primary residence) over total liabilities (excluding the amount of indebtedness secured by the primary residence up to its estimated fair market value, except that if the amount of such indebtedness outstanding at the time of investment exceeds the amount outstanding 60 days before such time, the amount of such additional indebtedness shall be included as a liability).