There are a number of ways to raise capital for your real estate projects. If you are a property developer or real estate investor, you might consider real estate crowdfunding. Whether your investment strategy is to buy and hold or fix and flip, you still need capital to purchase property and to make necessary improvements to increase its value. Here are eight reasons why crowdfunding is a great way to fund your property investments.
Reasons to Choose Crowdfunding
1. Convenience – Your real estate crowdfunding platform is right at your fingertips. In most cases, you can input the details of your property investment and have your crowdfunding campaign go live in minutes.
2. Access to more potential investors – By making your property investment available online, you have access to more potential investors than if you simply tried to raise capital by traditional means.
3. Investors can come from anywhere – The reason you have access to more potential investors is because there are no geographical boundaries to crowdfunding. When you publish the details of your real estate project online, that opens the door to investors from all around the world.
4. Raise more money – Having access to more investors from more geographical areas gives you more opportunities to raise more capital.
5. Complete your projects faster – And that means you can complete more projects at a faster pace. You could see your passive income go up just by completing more real estate projects.
6. Cash flow – Real estate bridge loans can give you instant cash flow so you can complete a project already started and get it back onto the market.
7. Marketing – Real estate crowdfunding is not just another way to raise capital for your investments. It can also serve as a way to market your business. When you start looking for a buyer or renter for your project, you’ve already got a network of investors who can help you find that buyer or renter.
8. Analytics – With crowdfunding, it’s easy to track and monitor how much capital you are raising for your projects and your cash flow from those projects. You can also project your returns so that you can plan your long-term investment strategy better and more effectively.
How to Raise Crowdfunding Capital
Getting started with real estate crowdfunding is as simple as 1-2-3.
1. Register with Sharestates as a Sponsor
2. List the details of your first real estate project
3. Promote your crowdfunding campaign, raise capital, and track your progress
Social capital is the best way to raise money for any real estate project because it relies on reaching members of your own network while adding new members to your network by expanding your reach through the networks of your already-established connections. The more potential investors you can reach, the more capital you can raise for your property investments and the more property investments you can fund in a shorter period of time. The best time to start crowdfunding your real estate projects is now.