Land development is a profitable and exciting career to pursue. But that doesn’t mean it isn’t without its challenges and risks. For instance, one of the starting points that people desiring to get into property development often overlook is the need for funding.
If you are an experienced developer, then the chance of you acquiring the needed money from investors is well within reason. But if you are just starting out and do not have the proven track record that people pledging lots of money to a project often need to feel confident, then it will probably be a bit more of a struggle to get on your feet.
Crowdfunding
One way to acquire the money needed from investors is to utilize the tool of crowdfunding. It’s never been easier to pitch ideas to potential investors then it is today. Sites like Invstor.com and Crowdfunding.com are all great places to pitch your project ideas to donors. There are many people who are looking to have their name involved in an interesting project, even if they may not be directly interested in land development.
Often, finding a donor that is not extremely invested in property development can prove to be beneficial to a developer who is just starting out, as it may allow for an easier to chance to acquire the necessary funding when your donor is less concerned with the specifics of a project.
Private Over Traditional
As I mentioned earlier, finding private/angel investors can be a lot easier than a traditional investor when starting out. There was a time when finding private investors was a difficult task, but thanks to the explosion of the digital age, this isn’t the case anymore. Now, since angel investors are people that put up their own money, unlike the traditional investing that comes from institutions or professional money managers, you may think that it’s a more difficult game to play. But angel investors have been found to be much more generous and willing to fund a project then the likes of their more institutionalized counterparts.
The key to finding private investors is to pitch your project in a way that is interesting and exciting. Often, it is easier to get an individual to be personally excited about a project than it is an entire team of professional investors.