Is Crowdfunding Just Another Fad?
December 19, 2017 | Natalie Dolce | GlobeSt.com
“Crowdfunding recognizes the fundamental changes brought on by technology—how people research, evaluate and act via online tools—which connects firms with investors.” Those thoughts are according to Karlin Conklin, a principal and the executive vice president, private equity, of Investors Management Group Inc., located in Woodland Hill, CA. Conklin leads IMG’s client relations and equity raising efforts for the acquisition of multifamily properties across the country and spoke with GlobeSt.com recently about all things crowdfunding.
GlobeSt.com: Some comments we have heard over the past year is that crowdfunding for real estate is just another fad. What do you say to that and how did this form of investing become so prominent?
Karlin Conklin: Crowdfunding began in earnest in 2012 due to federal regulatory changes with the Jumpstart Our Business Startups Act, or JOBS Act, which has allowed private firms and startups to raise capital without having to be dependent on investment firms. The JOBS Act has also allowed for direct investing in real estate. Crowdfunding recognizes the fundamental changes brought on by technology—how people research, evaluate and act via online tools—which connects firms with investors. It’s more than a fad. It gives individuals the opportunity to invest in a similar manner as institutional investors, with a check as small as $25,000.
