Thanks to advancements in technology, securing capital for upcoming projects and developments has become easier than ever. Gone are the days when developers and builders had to pitch their upcoming projects to multiple investors in order to secure a small amount of funding. Now, instead of going from lender to lender in order to get capital funding, developers and builders can raise funds for their upcoming development projects using online tools. Here are some of the best online tools that developers and builders can use to their advantage to secure capital and funding.
Funding platforms and websites are quick and efficient
In recent years, many platforms and websites have popped up specially created to secure funding for builders and property developers. In fact, a funding platform is considered a very efficient online finance raising tool for property developers. Sqft Capital is one such platform. Sqft Capital has specifically been created for property developers and builders in the UK looking for investors. This platform allows builders and developers to model deals which in turn help them find the best debt and equity investors online, quickly and very easily. Sqft Capital ensures that developers are able to secure deals that have the lowest equity requirement or the highest profit, depending on the requirement. Also, at Sqft Capital, property developers and builders can choose between multiple investment options such as 100% development finance, senior debt, mezzanine debt, side-by-side equity and so on.
Social media is a great way to attract investors
In the past few years, social media advertising has become a prevalent practice for every business. It allows companies to expand their customer base, increase brand awareness and even allows customers to make purchases online. Similarly, even property developers and builders can use social media to their advantage. Developers and builders can use social media to create awareness about their upcoming project, find investors to invest in their ongoing project and even find buyers interested in buying property once the project is complete. Developers can start advertising on social media channels such as Facebook and Instagram in order to attract potential investors. By creating targeted advertisements for target audiences, builders and developers might connect with high net worth individuals and like-minded investors who might be interested in making the most of this investment opportunity.
Crowdfunding is a great way to find multiple investors
Developers and builders can use crowdfunding platforms to secure funding for their upcoming projects and developments. In the last few years, crowdfunding has become a trendy tool for raising finance for property development. Many crowdfunding platforms have recently sprung up in the market, which helps builders and developers connect with the right investors. Some crowdfunding platforms are solely dedicated to connecting high net worth individuals with good investment opportunities, while some other platforms only connect builders and developers with seasoned investors. For example, some crowdfunding websites allow investors to pool in their resources for a certain equity stake. At the same time, there are others that connect real estate developers with real estate investors. On the other hand, some crowdfunding websites help developers connect with high turnover companies, while others help builders find the right angel investors to secure capital funding.
It is effortless for property builders and developers to find investors and secure funding using online tools in 2021. However, the number of potential investors that a developer can find online and the total amount of financing that a developer can secure majorly depends on the reputation of the builder. It will be very easy for seasoned builders and experienced developers to secure funding through crowdfunding platforms and by placing advertisements on social media. On the other hand, newer developers and inexperienced builders might find it easier to secure investments using funding platforms and websites.