How did crowdfunding come about?

In the past, real estate development was only available for investment through private equity in the development company or through real estate investment trusts (REITs) and was not feasible as a direct investment for most individuals. This is because each real estate development venture is a finite project, and registering each product as a security, even under Regulation D filings, is inefficient. Furthermore, real estate developers were not allowed to actively market or solicit investments for their projects due to restrictions by the Securities and Exchange Commission (SEC).

As the concept of crowdfunding grew, the Jumpstart Our Business Startups Act of 2012 modified certain rules under Regulation D that opened the door for more direct marketing and solicitation to non-accredited investors. Now, real estate developers can rely on Tulsa Real Estate Fund to solicit investments from both accredited* and non-accredited investors who are eager to make an investment in this market.