We’ve talked before about how the landscape of the real estate industry badly needs to jump into the twenty-first century. The real estate process still functions and operates on processes and methodologies that are decades old. However, crowdfunding is about to change all that. In fact, crowdfunding has the potential to further shape both residential and commercial real estate.
The Social Impact.
Considering the huge impact crowdfunding will have on businesses, it will also make a positive impact on the real estate industry. We’ve already seen how social media marketing strategies alone have helped real estate. Easy access to social media networks and platforms allows for businesses and real estate firms to advertise and connect with potential buyers, who also have the ability to reach out to their family, friends, an colleagues. Social media marketing alone can increase a network by at least two times.
The Crowdfunding Impact.
Therefore, an organized crowdfunding campaign that utilizes social media to get the word out on properties as well as funding resources has the potential to increase entrepreneurship as well as impact the world of real estate by reaching out to potential investors, firms, as well as venture capitalists, improving an investor’s and entrepreneur’s chances and opportunities to acquire the necessary funding.
Studies have shown that both real estate developers and investors can see significant financial returns through crowdfunding strategies and methodologies as well as significantly reduce risks. Some of the advantages to crowdfunding include allowing investors to work directly with real estate developers, the ability to choose particular real estate projects, as well as choose where to invest resources.
Working with a crowdfunding and investing firm can help maximize an investor’s chances of acquiring funding for a real estate purchase or project. Some crowdfunding firm strategies include pooling investor capital in a number of both residential and commercial real estate properties. For example, apartment complexes, office, and retail buildings all have the potential for higher market returns on invested capital. This helps minimize risk because resources are “pooled” together and spread across a number of properties, giving an investor a higher chance of seeing a higher return rate on their investments.
Finally, working with an experienced and professional real estate crowdfunding firm can help maximize opportunities for potential investors and entrepreneurs. A crowdfunding firm has the ability to tap into a number of resources and real estate assets as well as the ability to spread out an investor’s resources across various channels utilizing various methodologies, all enhancing opportunities for maximizing investors’ returns.