Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

Was the JOBS Act created for real estate? Dr. Adam Gower

Name: Was the JOBS Act created for real estate? Dr. Adam Gower
Uploaded: 2023-08-25T19:56:25+00:00
Duration: 40 s
Channel: Bob Fraser
Description: In this segment, the speaker clarifies that the 2012 JOBS Act was not designed for real estate. The legislation, whose acronym stands for Jumpstart Our…

25 Aug 2023 · 1 min

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In this segment, the speaker clarifies that the 2012 JOBS Act was not designed for real estate. The legislation, whose acronym stands for Jumpstart Our Business Startups, was intended to help small companies and startups access capital directly from accredited investors, bypassing the need for an IPO. A key provision introduced was general solicitation, allowing businesses to publicly ask anyone to invest. While real estate was not the target, the sector has nonetheless benefited from these new fundraising mechanisms.

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Crowdfunding actually is a misnomer. You're quite right. The 2012 JOBS Act had nothing at all to do with real estate. Real estate benefited from the JOBS Act. JOBS stands for Jumpstart Our Business Startups. It was designed for small companies to allow them to access liquidity from accredited investors. And it said basically, if you're a small business or you're a startup, you don't have to do an IPO. Anymore, right? To raise money, you can actually just raise money directly from people. The legal term is general solicitation. You can now ask anybody to invest with you.