Commercial Real Estate Direct Staff Report
A number of entrepreneurial real estate professionals have taken to the Web to syndicate real estate investments.
They're currently limited to raising capital from accredited investors, meaning those with net worths of at least $1 million. But the SEC last week proposed rules governing so-called crowdfunding that, if implemented, would open up the world of real estate syndications to even non-accredited investors.
Facilitating crowdfunding - raising capital in small increments from the public via the Internet - was called for by the Jumpstart Our Business Startups, or Jobs Act, which President Obama signed into law last year. The idea was to lower the costs involved in raising entrepreneurial capital. The SEC is now seeking comments on its proposed rules.
Real estate syndicators only recently started jumping into the crowdfunding wagon. Among them are Fundrise, which was founded by Benjamin and Daniel Miller, whose family's Western Development Corp. is among the better known developers in the Washington, D.C., area, and Realty Mogul, which was co-founded earlier this year by Jilliene...
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