1031 Crowdfunding LLC is using the principles of Title II of the JOBS Act to assist 1031 exchange investors in their exchanges by giving them multiple options to make the most out of their tax deferred real estate investments.
With the advancements of crowdfunding due to the changes in the JOBS Act over the last 2 years, real estate investors have more opportunities than ever to own investment-grade, large commercial real estate.
Title II of the JOBS Act Legalizes the Advertising of private investments like a Delaware Statutory Trust (DST). Prior to September 2013, crowdfunding was considered a way to accept donations to fund a venture or pre-sell a product. With the implementation of Title II of the JOBS Act, companies now have an efficient way to successfully raise enough funds to initiate their business plans. Furthermore, it provided accredited investors a way to purchase equity through online platforms that could offer returns on their investments. The new law made it legal for companies to publicly advertise equity fundraising to accredited investors. Companies no longer had to have pre-existing relationships with their investors and could use the internet to reach a broader pool of investors. Accredited investors appreciated this development as well because they now had easier access to find a larger range of investment options.
Title II of the JOBS Act and Real Estate:
With Title II of the JOBS Act in effect, it became possible to use online platforms to fund real estate acquisitions for accredited investors. Pooling funds together with other investors to acquire real estate is not a new concept, but using online portals to bring real estate investors together has made it more efficient and opened the opportunities to more investors. Large commercial properties that offer greater potential for higher returns are often out of the individual investor’s financial range, but can be acquired when multiple investors join together and each take partial ownership of the property. Publicly advertising these real estate investment opportunities through online platforms has helped investors realize that these types of investment opportunities exist and, therefore, has allowed for more investors to participate.