Real Estate and Crowdfunding
The crowdfunding allowed by the JOBS Act of 2012 is getting a lot of attention, but we have yet to hear from the SEC and FINRA on how they are going to regulate it. The details of that will spell doom or boom for crowdfunding. In any event, the dollar limit ($1 million in any 12-month period) makes it kind of uninteresting from an investment banking standpoint.
As investment bankers, we like the element of the Act that waives the prohibition against general solicitations for Reg D private placements, provided the deal is ultimately funded with accredited investors.
This article on real estate and crowdfunding provokes ideas about how interests in capital assets might be bought, sold, and traded among accredited investors in the private markets: http://www.businessweek.com/articles/2013-01-24/crowdfunding-for-real-estate-buy-a-slice-of-a-skyscraper.
More on crowdfunding as regulatory issues are clarified.