How property developers raise funds with help of online tools in 2021
Technology has changed the world as we know it. In the earlier days, property developers and builders had to go from investor to investor pitching their project in order to secure funding. Now, property developers and builders can just put up their project details online and find real-time investors in minutes. Gone are the days when developers had to submit countless documents and endless paperwork just to secure a loan for their upcoming project. Now, with the click of a button, property developers can find hundreds of investors and lenders who are willing to fund their project, how times have changed! If you are a property developer or a builder looking to raise funds for any upcoming projects in 2021, here are some online tools that will be of great help.
Crowdfunding has become one of the most common online finance raising tool for property developers in 2021. A number of crowdfunding websites have popped up around the world, which is solely dedicated to securing funds for upcoming projects. These platforms connect small investors, big businesses, multinational corporations, and high net worth individuals with property developers and builders. Different platforms have different lenders categories; one might connect property developers with real estate entrepreneurs, while another might connect builders and developers with only seasoned investors. All the lenders and investors are vetted, so securing funds from a crowdfunding platform is a very secure and easy way to finance an upcoming project.
Raising finance for property development has become easier than ever and angel investors are common in the world of start-ups and upcoming businesses. But, as businesses started to shut down and companies started going into losses, thanks to the Covid-19 pandemic, investors started realising that investing in real estate is a safe investment. So, many angel investors are choosing to invest in real estate developments. Basically, angel investors work on an equity basis where they buy a certain percentage of your company or your upcoming project based on how much money they are giving. The best part is that property developers and builders can easily find angel investors online via multiple websites and platforms, which makes the process of getting funds very quick and efficient!
Online lending options
In the UK and all around the world, many websites and platforms have come up which have solely been created to secure funding for property developers. Sqft.capital is one such company that prides itself in securing consistent and efficient funding for property developers in the UK. This company uses 14 metric inputs, which are then optimised automatically to create a presentation that is easy to understand. Sqft.capital ensures that you have the highest profit or the least equity requirement while developing a model to present to potential investors. Once the model is ready, the platform connects you with the best lenders based on your project and financial requirements. In fact, the average debt raises the request of Sqft.capital is £2,945,179, the average mezz raise request is £1,088,745, and the average equity raise request is £688,211. On average, the GDV projects that Sqft.capital raises funding on is about £4,640,130. So, no matter how big your upcoming project might be, companies such as Sqft.capital have your back! Such lending platforms and websites are one of the easiest ways for developers and builders to secure efficient funding from reliable sources.
Developers and builders can actually secure funds from their client base as well as their potential client base through social media. Think of this as a crowdfunding option, where funds can be raised directly through social media. Using paid advertisements, developers, and builders can showcase the unique and special features of their upcoming projects. By creating advertisements that catch the eye, developers can drastically increase their social media followers and increase their brand awareness. Then, using crowdfunding tools on Facebook and Instagram, developers can secure a certain percentage of their funding through social media. Of course, developers and builders can also create specific advertisements with potential investors, real estate investors and high net worth individuals as their target audience. As these investors see the targeted advertisements, they might be inclined to take up the investment opportunity. However, in this case, it is essential to hire an excellent social media marketing company so that your advertisements reach the desired audience and the money that you spend on marketing your upcoming project gives you a good return on investment!