The hot makeover shows on HGTV glamorized flipping houses. They quickly became the real estate version of "Shark Tank," having a similar effect on viewers. People sitting in their living room debate on where money should be spent to fix up an old house, or which home should have been chosen as the winner.
Real estate crowdfunding platforms have the potential to capture this market of consumers, with the new Reg CF rules going into effect. The same TV audience mentioned above are the future investors in Reg CF real estate crowdfunding. They are going to invest $1,000 into multi-unit housing, and augment the house flipping dream from their living room with a real piece of the action.
But they aren't jumping on it right now. Why?
Because consumers mostly have no idea what "crowdfunding" is or that the opportunity for them to participate exists. Even worse, they have no idea what in the world "real estate crowdfunding" means. Yes it's true, walk into your local coffee shop (outside San Francisco of course) and ask around.
So what platforms and borrowers will win the consumer engagement race? And how?
It's going to come down to education. First mover advantage will be rewarded to those who educate.
Our team researched the top 10 most frequently asked questions related to real estate crowdfunding. Then we had Los Angeles real estate expert, Greg Hebner of Community Rebuild Partners and Arixa Capital, answer each in a language digestible to the masses. CrowdFunnel produces videos like those below to educate and engage and attract investors to issuers and platforms. The videos appear on landing pages where potential investors are surveyed, in real time, regarding their specific interest in becoming part of history.
View the entire playlist below. For more information, call us directly at 1.424.253.1724.