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Developer Benefits

Posted on 04 February 2020

Reasons To Raise Property Finance Through Crowd

A 'Simple' Approach to Property Crowdfunding

Crowdfunding is becoming increasingly popular as method of raising finance for property projects, from land opportunities to new build homes and everything in between.   

The recent market conditions has resulted in property professionals seeking alternative methods of finance such as Raising Property Finance through Simple Crowdfunding.  There are many benefits that property professionals enjoy when raising crowd finance, but before I run through some of these, I want to mention some of the areas where crowdfunding may not be suitable:

  • Crowdfunding is not a ‘last resort’ finance option for your property project. If you have already exhausted every other avenue of finance, then consider restructuring the deal or not progressing.
  • Raising finance through crowd will require you to provide concise, accurate information that will be reviewed by the platform. If you do not have the time or inclination to provide this, then your project is not likely to be listed.
  • Make sure that you have control over the site or project first. Remember, this project is likely to be seen by many people and having it secured is better for you!

For viable projects, crowdfunding is a wonderful way to raise finance for property.  There are many benefits for raising funds through crowd when done properly, some of which are listed below.

Gain Access To An Investor Community

Raising funds through a crowdfunding platform lets you present your project and company to hundreds or thousands of potential new investors. You have the ability to tap into an engaged community of investors looking for the right opportunity to back.

Create A ‘Raving Fan Base’ Who Love What You Do

Crowdfunding helps you to create a ‘raving fan base’, strengthening your brand and allowing you to shine.  Some platforms provide you with the opportunity to engage with investors through forums, Learn Whilst Investing programs and more, all helping you develop more meaningful relationships with your investors. And remember, meeting investor expectations or even surpassing them, will deepen those relationships.

Manage Many Investors And Simplify Paperwork

Whether you are raising loan or equity finance, the crowdfunding platform has the technology and processes in place to manage multiple investors. This includes processing AML / KYC checks, collection and distribution of funds, distribution of shareholder or loan agreements and providing updates, which are all managed through the platform.

Ready to get started?

Join the Property Community and get started on your property crowdfunding journey.  Gain access to community knowledge and insights, property projects, funding, training and much more.