The state’s crowdfunding or peer-to-peer lending services emerged after the adoption of the 2012 Jumpstart Our Business Startup (JOBS) Act, which greatly expanded the ways in which investors raise capital for real estate acquisitions and development. The new regulation permitted the previously banned practice of advertising or openly soliciting private funding from accredited individuals and companies. Those with a net worth beyond $1,000,000, excluding their personal home, or with an annual income of $200,000 per individual or $300,000 per household, if filed jointly with a spouse, can be an accredited investor. Kenny Slaught discusses how the amendments encouraged individual borrowers and lenders to take part in debt and equity financing, where loans generate income in the form of interest, with no bank involved as an intermediary. The online realm has created a new pathway for property owners and funders to browse current investment paths, perform due diligence, and maintain dashboards to monitor how assets and financial products are performing.

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