interested in your real estate project.
#1: Tell Your Story in an Engaging Way Though investors are primarily interested in
#3: Show Your Numbers and Get Them Right Before you even think of putting together a
crowdfunding campaign, you need to have all the
making money, you must “hook” them in order
numbers lined up for your project. Know exactly
One of the best ways to do this is to tell the
repairs or renovations will be and what you can
them want to learn more. Maybe your invest-
to have reliable estimates created of how much
to save and modernize by converting it into
will want to see your plan for turning a profit.
think would be perfect for a growing startup.
pro investors who are making buying mis-
to explain how your deal can be facilitated.
what the property will cost you, how much any
story of your project in a way that will make
expect to pay in taxes and fees. You will also want
ment property is a vintage warehouse you want
you can reasonably make on the deal, as investors
luxury lofts, or a commercial property deal you
In today’s market, there are many new and
Whatever it is, tell the story of the deal and
takes. More specifically: their “Total Project
that will resonate with people who view your
tion price and renovation costs, exceeds 70
them interested right off the bat - they’ll stick
The key to avoiding that error is to stay true
your real estate deal a great investment.
In the event an inflated market corrects,
#2: Use Interesting Visuals
problems to your bottom line. As the fed
of your own experience in an engaging way
Cost,” which is a simple addition of acquisi-
crowdfunding page. If you “hook them” - get
percent of their After Repair Value (ARV).
around long enough to find out what makes
to your formulas and true to your numbers.
Like anyone else, investors like visual aids
even a small drop in sales price can cause increases interest rates, overall affordability
as opposed to walls of text and numbers. In-
will decrease, transitioning homeowners
plan to invest in, videos of yourself talking
to the $450,000s. If you didn’t buy right, this
clude plenty of pictures of the property you
who expected to purchase in the $500,000s
about your plans for it and an architect or
can become a problem, quickly.
look like when completed. Even a simple
bers and be unforgiving about your buy box.
surrounding area can be useful as long as it
#4: Be Honest About Challenges
the monotony of plain text.
is always peachy and contractors are in love
more visuals. It’s that simple. If you’re look-
the reality in which you live. Nothing turns
artist’s rendering of what your plans might graph showing property value data in the
conveys relevant information and breaks up The more complicated the project, the
What’s the lesson here? Know your num-
will take a long time to complete. Be honest about any issues you think may affect the
investment. Investors will find this refreshing
and be more likely to trust you based on your admissions that the deal isn’t perfect.
#5: Get Results All of us know investors love proven track
records. If you succeed on one crowdfunding venture and your investors earned a solid
return, you’ll find it much easier to secure
funding for your next venture. For this reason, it might be worth starting your crowdfunding efforts with small deals you can easily secure funding for elsewhere. These small ventures will give you a history of delivering on your
promises, and a group of investors who will be eager to work with you again. Treat your
investors properly, and they will do the same for you. It can be a beautiful circle.
As more investors look to online platforms to
find opportunities, crowdfunding can be one of
the best ways to grow your real estate investment business. Investors who succeed on crowdfunding platforms can fund deals easier and more quickly than those who are still stuck dealing with banks and hard money lenders. Make
yourself stand out and give lenders good reasons
to fund your project. You can reap the benefits of crowdfunding in your own real estate business. ■
Being the borrower who says everything
with you, leaves investors wondering about
ing for crowdfunders to provide funding for
an investor off more than seeing a project
without renderings, surveys, appraisals,
Investors know that nothing is ever perfect,
reality. Investors are very sharp. Provide them
any issues the property may have. Perhaps
so they can win, and so can you.
a bit of a slump lately, or perhaps the project
your single-family new construction project
being billed as a guaranteed moneymaker.
engineering, etc., you’re living in a different
so it’s a good idea to be forthcoming about
with every insight you can offer on your deal
the real estate market in the area has been in
ABOUT THE AUTHOR Abhi Golhar is the host of “Real Estate Deal Talk” and Managing Partner of Summit & Crowne. Abhi uses a “value-added” approach to invest in real estate renovation, new construction and development opportunities in the Southeast United States. He actively educates and works with investors to deploy market-driven strategies that yield success. He holds a B.S. in Electrical Engineering from the University of Michigan. You can find him on Twitter, Snapchat, and Instagram - @AbhiGolhar.
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