Crowdfunding as an indicator

Posted on 05-01-2016 by F. Geurtsen

Crowdfunding allows real estate entrepreneurs to raise money, but it doesn't stop there. Crowdfunding can be used excellently as a gauge of real estate success. In fact, crowdfunding creates support on multiple fronts.

Crowdfunding as a gauge?

Crowdfunding is much more than just raising funding. A crowdfunding campaign can serve as an indicator to measure the potential of real estate. When there is high demand from investors, it can almost be concluded that there is sufficient trust and interest in the project. This applies not only to investors, but crowdfunding also creates broad support among potential end users, other financiers, local residents and municipalities.  

Potential end users

A successful crowdfunding campaign does not go unnoticed by the potential buyers and tenants of a real estate project. Marketing efforts are undertaken at an early stage. During the crowdfunding campaign, it becomes possible for everyone to invest in the real estate project in question in a low-threshold manner. Through various media, the project is brought to the attention. All investors will become customer ambassadors and proudly tell about their made investment. This will have a positive influence on sales and rentals.  

Additional financing

Crowdfunding convinced. This convinces the other financiers to provide the additional financing. A successful crowdfunding campaign gives security to the bank, for example, to provide the financing with the first mortgage right. Not for nothing have hundreds of investors preceded. Banks are sympathetic to such stacked financing. The power of the crowd is considered an important value.

Neighbors and municipalities

The low threshold of crowdfunding allows all stakeholders to invest in the real estate project in question. Neighbors can contribute to the development of their own living environment. This naturally ensures broad support among local residents. After a successful crowdfunding campaign, municipalities are also more willing to cooperate. Lengthy procedures are completed more quickly. Finally, the plan is supported by a broad public.