Technology

Real Estate Connect: How crowdfunding will change real estate

JOBS Act will make it legal for companies to sell equity stakes to anyone over crowdfunding platforms

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

When the Securities and Exchange Commission finally gets around to fully implementing it, the Jumpstart Our Business Startups Act (JOBS Act) will make it legal for companies to sell equity stakes to anyone over crowdfunding platforms. Giving startup companies a new way to raise capital -- from small investors on the Internet -- could fund new ideas and change the way we buy real estate. Companies like indiegogo, CrowdFunder and Realty Mogul are already inventing new platforms for investors to pool their resources to make new companies -- and new real estate deals -- come to life. It's been more than a year since President Obama signed the JOBS Act  into law, but the SEC has struggled to draft some of the rules required to implement the act. One critic, Steven Rattner, worries that small, unsophisticated investors will be easy prey. He calls the JOBS Act the "greatest loosening of securities regulation in modern history," and says it's no wonder that the SEC has taken its t...