Why would a real estate investor launch a crowdfunding campaign, even if they didn’t need the extra capital?
Crowdfunding has increased in popularity and visibility in recent years. A surging number of web-based crowdfunding platforms have been delivering massive amounts of seed money and working capital to real estate related ventures.
Real estate investors on the cutting edge of this trend, and ready to leverage it, have found them to be extremely beneficial. It can be an incredibly easy path to raising capital fast, funding a down payment, attracting funds, eliminating risk or preventing the need to jump through hoops.
However, whether you need the extra cash or not, launching a crowdfunding campaign can do a lot for your real estate investing business. And the additional capital can certainly be put to work somewhere, somehow.
Running a successful (or sometimes even unsuccessful) crowdfunding campaign results in PR opportunities, list building, increased awareness, better positioning, and can be a powerful tool for cultivating loyal fans.
So yes, it can deliver more working capital, but that’s just the tip of the iceberg. Enhanced visibility can open many doors; from strategic partnerships to direct leads.
However, the real power of this strategy lies in the ability to generate more business. Crowdfunding campaigns can net big rewards in the short term, while preserving wealth over generations.