The JOBS Act: Opening Up Funding Sources for Real Estate Investors and Entrepreneurs
When the financial crisis hit, it damaged the distribution of money from investors to opportunities. The most obvious hit came to the real estate market when income investors stopped purchasing mortgage-backed securities. When the flow of money into mortgages stopped, the real estate market came to a screeching halt. Bad scene. 🙁
Of course, the ripple effect crippled lending and investment across all markets. And even as the central banks were printing money at unprecedented rates and flooding the global economy with financial liquidity, the pipelines carrying those funds to borrowers, including real estate investor and entrepreneurs, were gone or clogged.
In attempt to ease the regulatory restrictions which prohibit bypassing banks and Wall Street when raising money, the U.S. government passed the JOBS Act. While much needs to happen in order to get it implemented, the JOBS Act promises to make it easier for real estate investors and other entrepreneurs to access the funds they need to expand their businesses and create jobs. There’s hope! 🙂
To help you learn more about the JOBS Act and its impact on the use of crowdfunding for real estate investors, our very good friend and attorney Mauricio Rauld has written a special report, The JOBS Act: Opening Up Funding for Real Estate Investors and Entrepreneurs.