One of the things that hinder many from carrying out their dreams in real estate is the lack of sufficient funds. It is not easy to acquire loans from banks, and if you are lucky to qualify, you might only get part-financing for the whole project. For instance, banks might finance the construction but not loan you the funds required to buy the land. You either have to put aside the plan or look for other conventional methods of acquiring financing. The process might also be tedious and frustrating.
The establishment of the JOBS Act has changed everything.
Technology has simplified things in virtually every sector in the business world. Real estate has not been left behind. And yes, you can crowdfund for your real estate business. How is this possible? Through digital services that make the whole process from paperwork to fundraising is easy and fast.
The JOBS Act has also greatly improved the funding options available for real estate.
For successful real estate crowdfunding, there is a legal process to follow which entails some paperwork. Automating the whole process means that you have time to care of issues other than the legal process. This information will help you understand the process even better.
What is a Robo Attorney?
A robo-attorney is an AI creation that can carry out functions paralegals can handle. This simplifies work because the robot can do more and at the same time, can be faster. When you want to crowdfund, one of the things that you should look for in a law firm to help you with all the paperwork. Some might just give you the template to use, but it should go further than that. There is filling the forms to create the funding platform and ensuring compliance with all the rules and regulations.
You also need advice on how to go about it and the best practices to ensure positive results. Robo attorneys help with the legal procedures. This means that within a short period, you can have all the paperwork ready. They also understand the online funding trends.
The Entry Barriers are Lowered
When you use real estate crowdfunding, it means that you can reach out to the whole world effortlessly. This was not the case earlier on when the only primary source of funding was only from financial institutions especially banks. The qualification process was rigorous and complicated. New investors or those who could not provide adequate collateral for the loans were mostly shunned. Things have now changed.
Just by reaching out to the online community, you can get funds to start the project. The only cost will be the initial paperwork, but it will not cost you much. For instance, BootStrap Legal charges a flat rate of $7,500 to access its premium services which basically include everything you need to start your crowdfunding campaign moving. This will include the private placement memorandums, the bot and so much more. But the most important thing is, the whole process is simpler. This is a significantly lower amount compared to the traditional private placement memorandums methods where you could even pay three or four times more.
Some of the service providers you can check out include BootStrap Legal and CrowdFundingLawyers. The main thing that stands out in these two platforms is that, although the processes are fully automated, you can still get one-on-one service with an attorney. This means you can get the advice you require and at the same time get a faster process.
Getting Started with Crowdfunding
Choosing to crowdfund on your own can be disappointing especially if you have never done it before. The legalities surrounding the whole process require an experienced attorney. Also, because of the vast experience they have in dealing with real estate, they will be able to advise you on the best practices that will ensure you get the funds faster. The most important thing is making people believe in your dreams so that they can go ahead and fund.