Modern intuitive software and mobile applications are giving investors and builders a wider selection of lending and borrowing opportunities across a variety of real estate asset classes and geographies, notes Kenneth Slaught. California’s crowdfunding and peer-to-peer lending projects came to be after the 2012 adoption of the Jumpstart Our Business Startup (JOBS) Act, which largely democratized the processes in which sponsors raise funds for real estate acquisitions and development. The new regulation allowed the previously outlawed practice of advertising or openly soliciting private financing from accredited individuals and firms. Anyone with a net worth of $1,000,000, outside of ownership of their personal residences, or with an annual income of $200,000 or a household with $300,000 per annum, if filed jointly with a spouse, can become an accredited investor. The amendments gave the go ahead to individual borrowers and lenders to participate in debt and equity financing, where loans generate income in the form of interest, without an official financial institution acting as an intermediary. The online marketplace generated by the software and apps has created new avenues for property owners and funders to browse new investment offerings, perform due diligence, access dashboards to track how assets and financial products are performing.

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