How Can Real Estate Crowdfunding Benefit Cyprus Economy
- May 30, 2016
- 2 min read
In the recession wave that hit Cyprus, real estate developers are struggling more than ever to stay afloat and entrepreneurs are not facing great odds. Property Crowdfunding & P2P loans offer these property developers a chance at success, by showcasing their businesses and projects to the entire world.
There are numerous real estate crowdfunding and peer-to-peer lending platforms where Cyprus property developers can safely ask for capital such as Fundrise, Patch of Land and Crowd4funds, the company I co-founded, to name a few. While each crowdfunding or p2p lending platform offers their unique spin, the general concept is the same across the board. Property developers can create a profile typically containing a short video, an introduction to their project and some images to elaborate. The idea is to create a compelling message that readers will be drawn towards.
A great additional benefit to real estate crowdfunding & p2p loans is their economical helping hand. Anything that aids in generating revenue is desperately needed in Cyprus sluggard economy and real estate crowdfunding has proven to be a powerful force. Not only it can pump property developers with desperately needed cash, but it can also encourage entrepreneurs to continue creating even in the face of crisis. In sum, real estate crowdfunding & P2P loans are a great asset to Cyprus property developers, generating much needed revenue and increasing their customer base, all the while aiding Cyprus economy.
Each campaign can be set for a goal amount of money and a fixed number of days. Typically, most successful fundraising efforts receive about 40% of their revenue from their connections. Once a project has seen some traction, unrelated investors start coming out to support projects they believe in.
A common misconception is that real estate crowdfunding & P2P loans are just useful for small businesses and startups. This is definitely untrue. While property crowdfunding & P2P loans create funding opportunities that certain smaller property developers may not have received in the traditional way, it also is a great outlet for more established companies.
These property developers may be interested in expanding their product range or reverse engineering their investment, not to mention the excitement they can generate before the launch. Real Estate Crowdfunding has proven itself as a great asset in sourcing potential customers and growing an audience.
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