LOS ANGELES—Real estate has long held a place in wealthyinvestors' portfolios as an asset that can both produce regularincome while experiencing capital appreciation. These investorshave had access to those “in the know” about these deals and wereable to reach the high minimum investment amounts for real estateinvestment groups. However, with the emergence ofcrowdfinance and sophisticated onlineinvestment portals, the world of realestate investing is now changing.

Since the JOBS Act passed in April 2012 thatallows for securities-based crowdfunding and general solicitationof investors, there has been a growing movement to open uppreviously closed-door investment opportunities to other accreditedinvestors (those who make more than $200,000 annually) and,eventually, to everyday, non-accredited investors. The real estateindustry is already seeing the effects of this, with onlineinvestment platforms like AssetAvenue, offeringhigh-quality deals, often at much lower minimum investment levelsthat can attract a broader swath of investors.

For those new to real estate investing, a key element tosuccessfully investing in commercial real estate is performing athorough due diligence analysis prior to investing in a property.Due diligence is something that seasoned investors know isimportant, but many first-time investors get excited aboutacquiring their first investment property and lose sight of themechanics of knowing what they're buying.