This past July, an addition was made to the Jumpstart Our Business Start-Ups (JOBS) Act that passed last year, and it put Crowdfunding center stage in real estate. For those of you who are not familiar with Crowdfunding, it is the collective effort of individuals who network and pool their money, with the recent change to the JOBS act it now also refers to the funding of a company by selling small amounts of equity to many investors, allowing for a wider pool of small investors with fewer SEC restrictions.

The new legislation goes into effect next week and allows companies looking for investments to publically advertise deals to households with an annual income of only $200,000 and net worth of at least $1 million. Hotel developer Prodigy Networks recently raised $171 million in increments of $20,000 for a skyscraper in Bogota, Columbia and plans to do the same here soon in the US.

This is very interesting news and well worth a serious looking into by developers and investors who are ready to source capital.