Developing a new property is never an easy task. Builders and developers work hard to secure financing, ensure proper research, study the market and understand the target audience’s requirements for years before starting a new project. One of the most challenging tasks for property developers and builders is raising funds. To raise sufficient funds even to break ground, property developers must put in painstaking efforts to secure substantial funding. If you’re a property developer or a real estate builder who is raising finance for property development, here are some online tools that can make the process of fundraising relatively easy and seamless.
Lending and funding websites to the rescue
Get in touch with websites and platforms that are solely made to fund real estate developers. Sqft Capital is one such website that is a platform exclusively for property developers in the UK who are looking for quick and easy funding. This website also helps developers model deals based on the input of 14 metrics. In fact, Sqft Capital has an average debt raise request amounting to £2,945,179, an average equity raise request of £688,211 and the average mezz raise request around £1,088,745. The average GDV project that Sqft Capital raises funding for is £4,640,130. Just by looking at these figures, it is safe to say that Sqft Capital is a tremendous and much-needed online finance raising tool for property developers.
Crowdfunding through social media
Crowdfunding is one of the best ways to raise money for your new venture. Using the tools of social media advertising, you can find investors and sponsors from all around the world! Now, real estate capital no longer requires a personal connection with investors to secure funds. By creating well-made advertisements on social media and advertising to a target audience, you can quickly source capital for your upcoming projects and endeavours. However, while advertising on social media, you need to be very careful of the target audience you choose to advertise to. From location to demographics, from age, sex, gender and personal interests, you need to ensure that your advertisements reach your target audience. Once you do that, you will be able to find potential investors and organisations with ease.
Use real estate crowdfunding websites
There are so many websites that have specifically been made for real estate crowdfunding. In comparison, some websites help developers connect with investors and sponsors, while some websites only deal with high-end companies with high-value turnovers and transaction history. A few websites match investors with potential investment opportunities, such as real estate development opportunities. Based on the size of your project, financial requirements, and type of investors that you are looking for, you can use any one of these many real estate crowdfunding websites to your advantage.
Include a ‘Call to action’ button
One of the best ways to raise funding is by adding a call to action button on your website, specifically a ‘donate now’ call to action button. Once you have laid out all the details of your upcoming project and some unique features and wow factors, you should have a call to action button to encourage investors, potential buyers and charitable organisations to donate.
Gone are the days when cold calling and going door to door in the corporate world helped property developers secure financial investments. In order to increase brand awareness, improve brand recognition, ensure corporate action and reach potential investors, and of course, secure funds for your upcoming project, you need to start using online tools to make the process of fundraising effective and efficient!