Property investment was a purview of a tight-knit group of financial elites. Through crowdfunding, hundreds of thousands of investors, both experienced and non-experienced have managed to raise funds and venture in the burgeoning property market.
Crowdfunding leverages contributions from family members, friend and interested investors and to source funds for property projects.
To kick off your property crowdfunding campaign according to Shojin, you need to write a comprehensive business plan and present it to your potential contributors. Those who will accept your ideas will contribute to your kitty thereby enhancing your chances of venturing into business.
Property is a low-risk investment. This is what has precipitated the crowdfunding bandwagon to contribute lots of capital knowing that at the end of the day, profits will be made.
The crowdfunding innovation is new, property is old but the two have married each other and have become a homogenous companion due to the positive outcomes investors continue to witness. So how has the crowdfunding sector revolutionized the property industry?
Join Our Small Business Community
Get the latest news, resources and tips to help you and your small business succeed.
Reduced Initial Costs
Prior to crowdfunding, people used to spend huge amounts of money to initiate their property projects. The investor was the only source of funds. The only funding option that was available was the property trusts but these firms used to decide the kind of property investors should invest in.
Today, investors can have sufficient capital since individuals and companies contribute to meet the budget of your project. Through the collectivist backbone of property crowdfunding, investors tip in very little amount towards the initiation of projects.
Ability to Invest in Multiple Projects
Since the initial costs have been cut short, it means investors can use the little capital they have to start several projects. This is something that investors couldn’t dare in the past because everyone feared running out of capital.
Most property projects require hundreds of thousands of pounds to start so starting multiple projects was not practical. With crowdfunding, you can start several projects and still earn profits in the long run.
The more projects you have, the more contributions you receive from your network. This means you can financially explode and become one of the most prominent investors in the property industry.
Reduced Management Tasks
Initially, before the coming of the crowdfunding innovation, investors used to deal with middle men, lots of paper work and a lot of professional approvals from one authority to another. Such tasks required money and time which scared many from venturing into property.
With crowding, all these issues have been eased and now with just a mouse click, you can initiate your project, manage it and continue to run it remotely.
You stay informed of all activities that occur on your property and the related costs you incur are showcased and managed on the platform.
Make Informed Decisions
Crowdfunding platforms use artificial intelligence to analyze markets. Before you invest your money, the platform gives you knowledge on whether what you want to invest in is profitable or not.
This means you will not be making blind investments and so even your contributors will know that your business is reliable and trustworthy. Gone are the ways when people would make blind property investments.
Even if you are to invest in ten or more projects, you would do so with reliable information knowing you will make profits in the future.
Global Investment Capability and Authority
Property used to be a local endeavor or investment. You wouldn’t see a person risking his or her capital in a foreign country. With crowdfunding, the world is like a village to you because you are informed on all sorts of markets which means you can invest in any part of the world.
Find where you see there is a profit-promising future and invest your money. This means if your projects are successful, you can invest in multiple cities and reap supernormal profits.
You Don’t Need to Accredited to Invest
property used to have daunting steps or rules. People could have funds but because they weren’t credited, they wouldn’t be allowed to invest in property.
Such rules were put into complete stop and now literally anyone who has capital can venture into the sector. Crowdfunding has simplified the industry and as long as you have capital, you can invest.
In addition to the simplicity and flexibility that property crowdfunding has brought forth, investors are also exposed to potential partners. There are people who have already made it in the industry and as industry insiders, they can offer substantial guidance and tips to make young investors succeed.
Crowdfunding is also a way of creating awareness to your property and you may find before you even finish your projects, buyers start showing interest making you sell even the last property you have.