Real estate sponsors in the commercial real estate investment industry have often had to rely on personal relationships in order to gather investors. California residents who are interested in commercial real estate trends should know that technology is becoming a significant factor in how investment opportunities can now be marketed.
Over 12 million households in the United States can be classified as accredited investors under SEC rules and regulations. Because the JOBS Act has lifted certain restrictions, sponsors are now able to market properties and investment opportunities online to attract a large number of potential investors.
The integration of technology in commercial real estate investing is able to quicken the pace of an industry that has been plagued by slow and lengthy procedures. Real estate sponsors are using current technology to not only expand their search of new investors, but to use it to improve the efficiency of the commercial real estate investing process. With the various social media platforms, the cultivation of the relationships that are necessary for acquiring investors can be completed in just minutes. The length of time it takes to gather and process information has also been shortened.
The demystification of the commercial real estate industry is another major benefit of the technology integration. The information needed for investors to make wise decisions can be found online. This has resulted in a sharp increase in commercial real estate using technological means. A research report found that investors around the world invested $2.5 billion using online platforms and will spend $3.5 billion in 2016.
Technology is being used by commercial real estate developers to give investors real-time information and to streamline the investing process. An attorney can often assist a developer in reviewing proposed financing terms for a new project.