You did it. Yes, you. Our community of investors has fully funded Small Change’s first offering open to everyone, not just accredited investors.
This is history in the making, a major shift in how real estate development is funded, and who has access to those investment opportunities. Just a few years ago, you needed deep pockets and industry savvy to invest in real estate. Then came the JOBS Act, which was signed into law in 2012. It built on the wild success of internet crowdfunding sites like Kickstarter and Indiegogo, and did two important things: It made it possible for the crowd to invest in businesses not just donate to them. And it made it possible for anyone over the age of 18 to invest regardless of their income or net worth.
At the same time, over the last few years there has been a resurgent interest in cities and inner-city neighborhoods. While interest in cities has grown, financing for those innovative projects that make them better has become scarcer. Community banks are disappearing fast, and there are no venture capitalists standing by with cash.
“This was our moment,” said Small Change’s founder Eve Picker. “We saw the need. By connecting investors with developers, we can help to build real estate projects that make cities better. And everyone can participate.”
This is the new community banking.
So far, investors like you have funded projects via Small Change in cities including Pittsburgh, Los Angeles, New Orleans, and Washington D.C. These projects are as diverse as the cities in which they’ve been built. They include Pittsburgh’s first tiny house, a historic main street mixed-use conversion, and affordable housing in Washington, D.C. with the largest residential solar install in the country.
Now Small Change has completed our first offering open to all investors — the Starter Home Two project by architect Jonathan Tate. Tate will take odd-shaped vacant lots in New Orleans and turn them into architecturally-bold infill housing aimed at first-time homebuyers.
There will be many more offerings like this.
To everyone who invested in architect Jonathan Tate’s Starter Home Two project in New Orleans: Thank you for making a return to our cities. Keep an eye out for Small Change’s next offering open to everyone… It’s an exciting time, and we can’t wait to see what you’ll fund next.
Image by William Crocker