This week, we will continue our list of top 10 best practices for real estate crowdfunders. This is based on extensive first-hand research and experience, as well as on our observation of real estate sponsors who have successfully used online crowdfunding as a fundraising tool. (Here’s last week’s post, in case you missed it.)
6. Spend a little dough (it’s a wise investment). Unless you are already familiar with social media and online marketing, you should get a consulting firm on the job until you get a hang of it. We know experienced firms who can help for very affordable rates. Trust us, it will make a difference.
7. Be responsive. Be available. Make sure you always follow up on investors’ requests, and that you do so promptly. If possible, have a junior analyst on the job and schedule a few times slots every week for investor presentations.
8. Give it a story. Structures are more than just brick and mortar; they impact communities and the people that are part of them. Make sure you tell the story behind your project.
9. And after the deal… Once your deal funds, you cannot expect people to wait those five years to hear from you. Make sure you upload reports each time they are due, that you attend periodic investor meetings, and that you periodically answer investor questions on the deal wall. For those who fail to do this, deal number 2 will be a tough sell.
10. Take it easy. This is a nascent industry. Give it time. You are not here to fundraise one deal but many. And you are not going to raise those $5M on your first tour. (In fact, if you do things well, expect to raise a fraction of that.) If you are reading this, you are already ahead of the competition. Your job now is to create a profile on GroundBreaker and start building a following of investors which, over time, will grow and will invest larger amounts, based on its positive experience with you and your firm.