Best Funding Tips for Real Estate Start UpsThe trend of setting startups has been grasping India from the past some time and interestingly the real estate sector has not remained untouched from the same. This idea of being a businessman or entrepreneur has given birth to various organizations in the market but survival is not an easy thing here. So, if you also plan to try destiny in the property market then know these funding tips for real estate startups.

1. Crowdfunding

The technology has offered new dimensions to the Indian real estate sector and thus the aspiring entrepreneurs must encash the same. You are suggested to forget the traditional method of raising funds for business where one was required to draw a business plan that had to be presented to the banks, financial lenders, business head of multiple companies and more to gather funds.

However, the Crowdfunding methodology lets you to float a business plan online and those interested in the same concept can make online donations from minimum to maximum amount and from somewhere to anywhere across the globe. The process of collecting funds via the Crowdfunding process brings in various financers at multiple stages and this may include your friends, family members and more.

In short, this is also the first step towards digital marketing of the business.

2. Angel Investment

Nature of the real estate sector is unpredictable and nobody knows what’s in store for tomorrow. Thus, you need to have strong financial backing and this can be earned through Angel investment. This is the second and important funding concept for real estate startups as you can bet on affluent individuals who in return wish to have a share in the cake.

An angel investor is the one who is ready to offer hefty funding to your real estate business in exchange of equity ownership or convertible debt in the same. This is one of the best ideas to safeguard property business in India as one requires money to complete/sell projects in well in time.

3. Venture Capital Funding

The initial investment in the business is known as Venture capital and this funding tip is ideal only when the business has ample growth opportunities. Under this concept, the capitalist contributes via equity or equity-related instruments and walks out of the business by selling his/her shares when the company is performing at par and earning profit.

The capitalist here has the advantage to use his/her mentorship and expertise. The Kalaari Capital, Nexus Venture, and Helion Ventures are some of the top venture capital firms in India.

4. Raise Funds via Bank Loan

This is the age-old method to raise fundings and thus going this way forward is not a bad idea. The young entrepreneurs can submit a startup business proposal to these financial lenders to get the loan sanctioned.

5. Expert Speak

The industry experts suggest that the best idea to raise funding for a real estate startup is to approach family offices, corporates, and High Networth Individuals (HNI). These people take a huge interest in such investments as they can cash the liquidity through the same.

Conclusion:

Doing property business is not a child’s play and thus you must thoroughly research, plan and examine all the pros and cons of this industry before stepping in the market as a small mistake can make you pay a big cost.

Also Read : Reasons to make Property Investment in the Monsoon Season

Shilpa Sardare Jain
Shilpa Sardare Jain is a journalist and works as a content writer with us. Her journalistic background helps her cater the viewers with accurate news about everything around. She is experienced at writing articles, blogs, features and news related to different genres. She started her career with News24 News channel and then worked with a leading digital media channel One India News and few others. Shilpa Sardare Jain is a joyful person who loves to explore new places and food when not working. Also, she has the zest for reading autobiographies of politicians who took the world by storm.