New intuitive software and mobile applications, says Kenny Slaught, give investors and builders a greater selection of lending and borrowing opportunities on varieties of real estate asset classes and geographies. California’s crowdfunding or peer-to-peer lending projects came to light after the adoption of the Jumpstart Our Business Startup (JOBS) Act in 2012, which significantly loosened the ways, in which sponsors raise funds for real estate acquisitions and development. The new law allowed the previously banned practice of advertising or openly soliciting private funding from accredited individuals and firms. Anyone with a net worth of $1,000,000, excluding 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 green light 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 involved as an intermediary. The online marketplace has created a new avenue 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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