California’s crowdfunding or person-to-person lending campaigns rose after the adoption of the Jumpstart Our Business Startup (JOBS) Act in 2012, which openly democratized the ways, in which sponsors raise funds for real estate acquisitions and development. The new regulation permits the previously forbidden practice of promoting or openly soliciting private funding from accredited people and firms. Anyone with a net worth exceeding $1,000,000, not including their personal residences, or with an annual income of $200,000 or a household with $300,000 per year, if filed jointly with a spouse, can qualify as an accredited investor. Kenny Slaught says that the amendments gave the go ahead to individual borrowers and lenders to engage in debt and equity financing, where loans generate income in the form of interest, but without an official financial institution acting as an intermediary. These campaigns have generated a new avenue for property owners and funders to browse new investment offerings, perform due diligence, access dashboards to track how assets and financial investments are performing.

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