How the Jobs Act Affects Raising Funds For Real Estate Investors

How the JOBS Act Affects Real Estate Investors
In the past, raising cash to finance a real estate deal was often a three part process due to the rules and regulations in the real estate market. Since the rules prohibited publicly marketing any private real estate deals, investors were limited to asking only those people with whom they already had a relationship, such as family and friends.

Investors could certainly make more friends at networking and business groups but before you could talk about your real estate deal, you had to form that relationship first, which can often take months. And what if your family and friends aren’t interested in investing in real estate or they simply don’t have any capital to invest in multiple deals? Investors were very limited in their resources.

However, Congress passed the JOBS Act in April 2012 which requires the SEC to allow public marketing of private real estate deals, basically putting the small investors on an even playing ground with the larger investment companies with huge cash reserves.

No longer do you have to have a pre-existing relationship with someone before you can pitch your deal. Any one, even non-accredited investors can learn about private deals and actively invest without penalty.

Of course, there will still be certain challenges, such as ways of finding out about all these deals since smaller companies likely can’t afford to hire staff members to do this research. But no doubt there are resources in the works to solve this problem.

What are your thoughts on the JOBS Act? Will it help or hurt business for real estate investors? Leave your comment below.

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Hey, my name is Trevor and I'm the founder of The REI Brain and editor/contributor. I started investing in real es.tate when I was 21... and love entrepreneurship, the internet, and real estate. My main focus today is growing my companies, systemizing my businesses so I can work less and make more, and spend more time with my family. Learn more about me at

One Response to “How the Jobs Act Affects Raising Funds For Real Estate Investors”

  1. Jilliene January 10, 2013 at 7:49 pm #

    Nice article. My company, is one of the companies taking advantage of this! We’re starting with accredited investors and are incredibly excited about the ability to help both real estate investors and small and medium sized private real estate companies. Real estate finance is ripe for disruption! Access to deal flow and capital should not be as hard as it has been historically.

    I’d invite you to check it out at


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