Lifting a regulatory ban that bars ordinary investors from crowdfunding could greatly boost the volume of deals and capital raised for companies, while allowing investors to directly access annual returns of 7 to 12 percent, industry executives say. Crowdfunding is the practice of financing a project or venture by raising small amounts of money from many people, typically through the Internet. The company wants to make real estate investing as easy as investing in stocks, a common industry refrain, but a big hurdle at present is that only accredited investors – those with at least $1 million in assets excluding their home – can invest in the online marketplaces that connect borrowers with investors. “We are very eager to one day be able to open our platform to anybody that wants to put $1,000 or a couple hundred bucks into real estate, because let’s face it, real estate is one of the best ways to build wealth and you shouldn’t have to have a certain net worth to invest in real estate,” Athwal said. According to a posting on the website of the U.S. Office of Information and Regulatory Affairs, the implementation of Title III of the Jumpstart Our Business Startups Act – which would open crowdfunding to small investors – was tentatively expected this month. THE RACE IS ON Real estate has been the crowdfunding standout since the JOBS Act two years ago allowed an exemption to the ban on the public solicitation of private capital investments, said Crowdnetic Corp, a provider of crowdfunding data and research.
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New Guidelines For Critical Elements In Crowdfunding
What is crowdfunding? Leveraging the accessibility of the internet and social media , crowdfunding offers a method of raising capital by providing access to tens of thousands of investors from friends and family, to potential customers and individual investors. Contributions range from $20 to thousands, with payback encompassing rewards to cash returns on investment estimated in the 7-20 percent range. Hows it crowdfunding work?
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