The Home Buyer's Guide To Crowdfunding

When you want to buy a home, you may encounter a variety of obstacles along the way. Whether it's coming up with a down payment or finding your dream home that's within your budget, so many things can turn you in different directions. If you find yourself in financial need during the home buying process, you may try crowdfunding to raise the necessary funds. Here's what you need to know about crowdfunding as a home buyer.

Set Realistic Goals

One way to ensure your success in crowdfunding is to set realistic goals. If you have a huge social media following or know that you can secure the assistance of someone who does, you may set your goal high. Otherwise, it's best to set your earning goal realistic. People may be more likely to donate to a cause with a realistic goal that already has support.

If someone looks at your page and think you are shooting for the impossible, they may not be motivated to donate. Also, on some crowdfunding websites, you are not allowed to receive any of the funds if your goal is not met. On the other side of that, you are allowed to receive funds that exceed your goal, so setting a lower goal doesn't mean you can't receive funds above that goal.

Tell Your Story

When you are making your real estate crowdfunding campaign, be sure to get personal. Tell your own story from the heart. People who will visit your crowdfunding page want a reason to give to you. Let them know why they should. Be clear and open about your situation. When you are honest about why you need the money, people are more likely to respond by donating what they can to help you achieve your goal.

Prepare for Negativity

Many crowdfunding campaigns receive criticism. Although people manage to raise many thousands of dollars for causes and individuals, a lot of people still don't quite get the concept of crowdfunding. They may get defensive and angry because they are not able to raise such funds themselves. The more successful your crowdfunding campaign is, the more negative feedback you may receive.

Prepare for criticism and how you will handle it without losing your cool. Whatever you do, never rant or provide angry feedback to direct criticism on your website, social media pages, or crowdfunding page. Take the high road whenever possible and remind yourself that a lot of criticism stems from jealousy and insecurity.

Promote Your Campaign

The most important thing that you can do to ensure the success of your real estate crowdfunding campaign is to promote it as much as possible. Promote it on all your social media pages. Make light-hearted memes that succinctly communicate why you need to raise funds. Post them with short explanations about why you need help in order to get your home.

Finally, keep in mind that anyone has a right to try crowdfunding. People have used it for pretty much any reason you can imagine, so don't let anyone shame you out of using crowdfunding methods if that's what you want to do. Stick to your goals and focus on what you aim to achieve with your crowdfunding campaign—getting your home.