Any new business whether a small startup or big venture needs proper funding for its smooth functioning. However, today with mushrooming start-up culture many people are looking to come out with a new idea which can not only prove profitable for the concerned individual but also make them independent and financially secure.
The Indian commercial market is full of many startups that are giving tough completion to other traditional business. Among all such business, real estate startups are also booming a lot. The Indian realty market is a mix of many traditional and bigger companies, but if you are a go-getter and can think uniquely, then the realty market is open to you. Today many startups like OYO, CoLive, Nestaway etc. have emerged which are offering varied services to the property buyers may be rental or investment. Now, in order to create a different space for your business, you need full-proof financial planning and for that the need for funding arises. Take a look at some of the best funding options available for the real estate startups:
Loan from Banks
Perhaps, this is the easiest and preferred idea which comes into the mind of any startup business person when it comes to funding. Both public-sectors as well as private banks offer loans to the startups, but then the process is very strict and hectic. In recent years many real estate companies have become non-performing assets (NPA), due to this banks are a little stringent in giving loans to such companies. Still, if you have the ability to satisfy the bank with your creative and full-proof business plan, they can provide a loan to start the business.
Money through Venture Capital Funding
Now, this funding option is preferred by most of the financial as well as real estate experts. Here, any one may be an NRI or HNI or an investor can invest their money to the startup business in which they can see growth potential. The money can be contributed via private equity which in later stages can also come out of the business by selling their stakes. At the same time, the startup can also get an upper hand of expert business personnel who can guide about the profit and losses. A real estate startup can make good use of this funding option to avoid any delay in construction and possession. Examples of top venture capital firms in India are Helion Venture Partners, Sequoia Capital India, Blume Ventures etc.
P2P Lending or Crowd Funding
Another favourable funding option for a real estate startup is via P2P Lending or Crowd Funding. Here, loans are available through online lenders who are present on various P2P lending websites. Today, this funding option is gaining momentum in the financial landscape with many preferring to obtain finds via this process. All you have to do is to upload your business plan and extensive research on the lending site. The lenders after reading it carefully can come forward and provide you the needed money in the loan form.
Money through Angel Investment
Just as the name suggests, Angel investors are those who look for prospective startups so as to invest their liquid money in the form of capital. In return, they can earn equity ownership or shares or profitable stakes in the company. With many high net worth individuals looking to invest their money in Real estate, this can be a good option for a startup.
So, with plenty of options available in the financial world, you can opt the one which suits your business growth the best.