Crowdfunding has fast become a hot trend, increasing in popularity during the last few years, as more and more people realize the massive opportunity that web-based crowdfunding platforms present to small business owners, entrepreneurs, developers, artists and, oddly enough, real estate investors.
Crowdfunding, sometimes referred to as crowd financing, hyper funding or crowd source capital, is the means by which a group of people pool their money together to support the efforts of individuals, companies or organizations in a project or endeavor. Crowdfunding is used to help finance all kinds of things, like start up businesses, artistic creations like books, films or music recordings, political campaigns, disaster relief, digital applications, and, of late, real estate investment. Generally these groups form online and funding is requested and generated via the Internet.
Some might wonder why a real estate investor would consider launching a crowd funding campaign; think about it: thousands are taking advantage of the growing number of online crowdfunding platforms to raise astounding sums of start up and working capital for all kinds of ventures: Why not real estate?
Some savvy real estate investors have caught on and are riding the wave of this hot new trend; by leveraging this awesome source, they have found it to be a huge boon for their real estate investment businesses, with massive benefits like risk reduction, fast capital, down payment funding and an abatement to the tangle of trip wires to jump over.
In fact, even if they are not in need of the extra capital, many are choosing to go this route because, who can’t use extra capital to put to work somewhere?
The bonuses, though, are the not so obvious benefits. Launching a great crowdfunding campaign, regardless of its success, will increase awareness of you and your business, give you better positioning, help build your contact list, offer terrific PR opportunities and help you cultivate a loyal fan base. Let’s face it; putting a spotlight on the profile of you or your real estate investment business can only result more opportunities for strategic partnerships or leads.
Crowdfunding: it’s a surprising, yet lucrative and ultimately smart strategic move.
Kent Clothier is President and CEO of Real Estate Worldwide (REWW), a highly sought-after speaker, the owner of three multi-million dollar a year Internet marketed brands, and proud husband and father. Kent is motivated by his love of family and freedom, creating products that enable people to live their lives the way they choose.