Future of Real Estate Investments: How to Start a Real Estate Crowdfunding Business?
The Real Estate industry has changed radically over time. This is the result of an ascent in technology and some spectacular developments in the Financial & Regulatory departments. The emergence of crowd-funding has lured investors from all across the globe making Real Estate Crowd-funding an attractive destination. With crowd-funding, things have changed a big way for Real-estate.
Crowd-funding, an idea which had emerged to clear financial emergencies and setbacks soon evolved as a trusted means of investing and lending.The idea was instantly adopted by the Real Estate industry as a dependable source of funding.
Discussing the Future Prospects
Real-estate crowd-funding, in short, involves the pooling of funds by multiple investors in a Real estate project. Basically, there are two investment options i.e; Equity Investments & Debt Investments, out of which Equity investment is the more preferred one.
The real estate industry marks a rising trend and is among the fastest growing global crowd-funding industries. It marked a transaction of $400m in 2013 and approx. $3.5b in 2016. However, it is still in its early stage and is yet to go on a long way. As per statistics, North America holds a market share of 54%, Europe holds 39% and Asia 7%. This gives a basic conception of the overall market.
Tips before Venturing into Real-Estate Crowd-funding Business
After the inception of the topic, we can move forward to explore the tips needed to venture into the Real Estate Crowd-funding Business.
Deciding the kind of Real Estate you will offer
Before you start off, take a break to think and decide on your investment plans and the choice of Real Estate which you are planning to offer. There are a wide number of categories to choose from: Commercial, Raw Land, Residential, Fix & Flip & New Development Real Estates.
Picking the right technology
Creating the right Real Estate Crowd-funding website will require you to interact with programmers and determine the upgraded technologies which you can adopt for a fulfilling, attractive website. Once you have the knowledge of an appropriate technology, you can set up your website with a handful of creative designers and programmers.
Technologies Driving Real Estate Crowd-funding Websites
PHP, CakePHP, MySQL, PostgreSQL, Bootstrap, Linux etc are some of the finest technologies adopted for Real Estate Crowd Funding Projects. You might otherwise simply avail ready-made crowd-funding scripts which will provide the same service in a minimal tenure. These are much in trend these days owing to their convenient attributes and fast installation. Agriya’s Kickstarter clone script has been rising in trend due to a set of its user-adaptable features. It will be a suitable ready-made solution to set up your real estate crowdfunding platform.
Funding your project
Funding is a vital aspect which has to be catered to before you kick start any a Real Estate Crowd-funding website. Though a platform may be raised just for investors, securing a good source of funding can go a long way in financing your business.There are several ways of funding like venture capital, loans, crowd-funding, and angel- investing etc. The source of funding that you secure is up to you. Have a thorough research before choosing your funding medium.
Having an insight of Local Market Demographics?
It is vital to have an insight of the Local market as well as its demographics. It is not advisable to enter into deals without a thorough examination of properties and their locations.
Analysing the business
It is inevitable for any business to succeed in the front of competitions by a preceding analysis of the ins and outs, strengths and weaknesses as well as the threats and opportunities meeting the industry. Developing an analysis before jumping into the crowdfunding venture can be useful as well as well-appreciable.
Generating and Listing out Investors for your Domain
Networking and developing a list of investors is essential and needs hard work. A good deal of sales and marketing is required to develop a strong network of investors to invest on your Real Estate Property. You can try Facebook and Google Ads or email and content marketing for the same. There are several other methods to explore for a sound network and a thriving base.
It requires a lot of diligence, interest and hard work to get through a Real Estate Crowd-funding business. Verifying Documents, comparing deals, verifying locations and investors’ information are all vital for a successful journey. Also, a well-drawn preordained plan and diversification of investments can prove to be wise steps in your Real Estate Business. Agriya has come up with an exciting solution, Crowdfunding pledge which can ease out your work and give you the much-needed support for generating and streamlining your Fund-Raising activities.