This is a guest post from Katlin Jackson, Fundrise’s VP of Real Estate, Pacific Northwest.
The developer’s mecca is having a single source of capital for every project. It’s simple, fast… and practically unattainable. So why then would someone want 300 investors instead of one?
Picture this: you are a developer with a project going through a public entitlements process. You are nervous because experience has taught you that often a few irrational individuals can hold up a project for months or even years.
Now imagine that you have 300 individuals from the community who are investors in your project. These people invested because they believe in the project and its benefits. Think of what a community meeting will be like with 300 supporters at your side. That’s powerful.
Or, imagine you’re leasing new retail space in your building. When talking to potential tenants, you are able to tell them that there are already 300 future customers who are partners in the project. 300 people that will be sharing on social media, bringing their friends, and showing it off to their coworkers (it’s cool to own part of a building!). 300 investors means authentic, local, guerrilla advertising for your project.
300 investors means specific market research and local knowledge. People invest because they care about good development and want to see projects succeed. Ask them for ideas and you may be surprised at what you find.
300 investors is about more than the money, it’s about the people.
There is power in the crowd. If accessed correctly, it will not only provide a new source of capital, but a new kind of community support, too.
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