Technology has transformed commercial real estate in Missouri and around the country. Previously, commercial real estate owners and developers were limited in how they could work to attract investors because of regulations and a long, convoluted process. With the relaxation of the laws and the availability of marketing properties in order to attract investors over the internet, the process is much faster and easier today.
The JOBS Act eased some restrictions and allowed people to market their investment opportunities to a much broader audience. With the internet, people may potentially reach millions of accredited investors. The Securities and Exchange Commission says that there are 12 million U.S. households that qualify as such.
Online platforms allow investors to access information about properties that they previously would have had to pay substantial sums in order to investigate fully. In 2015, $2.5 billion was invested through online platforms around the world, and it is expected to reach $3.5 billion in 2016. People who own properties may also make digital marketing materials that describe their properties in greater detail. The internet also allows them to more easily report to their investors on a regular basis.
Commercial property owners and developers might consider the online platforms as alternative sources for capital funding. As banks tighten their lending, crowdfunding platforms for commercial real estate investing may help to fill the gap. Developers might want to have the assistance of their attorneys in conducting due diligence on potential financing sources. Legal counsel can also review any proposed financing agreements in order to ensure that there are not any provisions that could prove to be a problem down the road.