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Crowd Funding for Real Estate Investing

Written by Peter Jonnes

Looking for a better and easier way to raise private money and visibility?

Real estate investing companies and solo investors have been hustling hard to hunt down and recruit private mortgage lenders while desperately trying to raise their visibility on the web to stand out from the crowd. Now there is another potentially far easier way to accomplish both at the same time…

The 3 main challenges those in real estate investing currently face in these efforts are:

  1. Trying to convince of the benefits of private lending and building trust at the same time
  2. Spreading budget too thin in too many directions, lowering saturation & effectiveness
  3. Trying to differentiate themselves from everyone else, and those with large budgets

The current trend and popularity of crowd funding offers investors a far easier way to raise money with fewer resources spent while capturing more of the limelight.

Drawing on crowd funding means being able to pool money from more parties which makes the investment and risk more palatable for lenders, while reaching those who already know they want ot lend in order to leap obstacles others face in trying to win trust. The beautiful thing is that the existing platforms for this also mean this can be done less expensively than direct mail, cold calling or other elaborate yet unproven internet marketing campaigns.

Where to tap into crowd funding?

  • Angel investor & VC sites
  • Crowd funding platforms like Kickstarter
  • Peer-2-peer lending sites

These sources all have massive databases of individuals actively seeking to loan their money, many of whom are very interested in real estate.

There can be some restrictions on how you raise money and how you ask for it but with a little creativity and innovation you could find this your very own mint for all the cash for investing in real estate you’ll ever need.

The best way to approach this and what has enabled other entrepreneurs to even raise 1,000% more than what they originally asked for is to utilize storytelling, present opportunities as causes and specific projects, enroll lenders in the whole experience so that they aren’t just getting a decent return on their money but feel like they are really a part of something.

Then boost awareness of your campaigns via blogs, social and press releases for viral attention and maximum participation and ROI.