The adoption of the Jumpstart Our Business Startup (JOBS) Act back in 2012 allowed crowdfunding (or peer-to-peer lending services) in California to emerge. As such, sponsors had even more ways to raise capital to buy and develop properties. Before this law was adopted, it was illegal to advertise or openly ask for funds from accredited entities. Anyone can become an accredited investor if they meet these criteria: having a net worth of 1 million USD in which their personal homes are not included, having an annual income of at least 200,000 USD per person or at least 300,000 USD per household, and if they apply with a spouse. According to Kenny Slaught, the amendments allow campaigns and lenders to participate in the debt and equity financing directly without a bank, and turning the loans into income because of their interest. Thanks to the internet, there’s now a new way for real estate owners and lenders to use the present investment offers, use appropriate attention, and keep dashboards to track how the assets and other monetary instruments perform.
Read more: http://finance.dailyherald.com/dailyherald/news/read/33739313/Kenny_Slaught_