The crowdfunding or peer-to-peer lending services in California emerged after the adoption of the Jumpstart Our Business Startup (JOBS) Act in 2012, which significantly expanded the ways in which sponsors raise capital for real estate acquisitions and development. The new law legalized the previously outlawed practice of advertising or openly soliciting private funding from accredited individuals and companies. Those with a net worth of $1,000,000, excluding their personal homes, or with an annual income equalling $200,000 per individual or $300,000 per household, if filed jointly with a spouse, can become an accredited investor. Kenny Slaught has noted how the amendments gave the green light to campaigns and lenders wanting to take part in debt and equity financing, where loans generate income in the form of interest, without a bank involved in the process. The online marketplace has created a new pathway for property owners and funders to peruse current investment offerings, perform due diligence, and maintain dashboards to track how assets and financial product performance.

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