If you have a real estate project coming up, you need to have a solid source of funding. Unfortunately, development projects are expensive, and they are only rising in price. Fortunately, there are plenty of options available, and you may have heard of crowdfunding. What is crowdfunding, and how does crowdfunding work for real estate development?
In crowdfunding, you get a bunch of small donations from a lot of people. Traditionally, you might have your real estate project backed by a single lender. Then, that lender charges an interest rate on the loan that you need to pay back with the rest of the balance. Instead of going with the traditional lender, you may be able to pay for a portion of the project using crowdfunding. If you advertise your project, you may be able to get people to donate money to the project, helping you reduce the amount of money you need to borrow from a traditional lender.
If you are interested in going to the crowdfunding route for your real estate development project, you need to advertise. For example, you may want to run an email marketing campaign that lets people know you are looking for donations. Or, you may want to use social media to spread the word. For example, you may want to use Facebook, Instagram, Twitter, YouTube, or even TikTok to help you convince people to donate money to the project. If you want to increase the number of donations you get, you may want to offer something in return. For example, you may want to offer coffee mugs, a T-shirt, or even a keychain that can serve as a source of thanks.
Even though it can be difficult to collect donations through crowdfunding, this can play a key role in the development project’s campaign. If you can combine this with other fundraising tactics, you may make the project more affordable. You might want to reach out to professionals who can help you orchestrate your campaign.
Want to read another interesting article?