Last week hailed the second success in our property development crowdfunding goals with Simple Equity. We raised £600,000 towards the development of our luxury 4-bed flat in Harrington Gardens, SW7! Slower than our Dalston Lane project raise, this one required a little more groundwork (no pun intended) and a change in tack as the clock was ticking. Crowdfunding is a time game, and, as we’re learning, you can come to feel the energy lagging on a raise, in this case even early on in the process. With the pressure rising and our full strategy already in flow we needed to think about what else we could do to get investment firing on what we know to be a brilliant opportunity. Here’s what we learned the second time around.
Ask advice and be flexible
After almost two weeks it felt as though the raise was lagging. Nicole had a meeting already scheduled for some Facebook Live time with John Corey from Property Fortress. With years in the industry and always one to lend sane property tips, the subject quickly turned to crowdfunding and our current raise. He immediately suggested lowering the share price. While an obvious choice, we did wonder – won’t that somehow devalue what we’re doing? The answer was, why would it devalue the project when it opens the forum up to so many more investors who already value it enough to invest? So we did. The share price was lowered from £5k to £500 and we saw more and more investors jump in. Did this deter the larger investors? No, they just pledged more shares.
Show and tell
With the raise back on track but Christmas already waving tinsel at us, we needed an extra something else as well. With only two days notice we put on a special tour of the Harrington Gardens SW7 property. Presenting the space as it is, showing them the beautiful CGIs, and letting investors’ natural visualisation skills take them through it was a huge boost to the raise. Before the two hour slot had even finished we had raised an extra £200k. And we got to have a glass of bubbly at lunch!
Someone in a property meeting recently said “Snapchat and Facebook are for ‘chatting’ – it’s not really my business model to chat with my clients.”
Facebook, Twitter, Instagram, LinkedIn, Snapchat, they work! Go and do it! In under a couple of months Nicole Bremner, director of East Eight and London Central Developments, acquired three new investors through the underused phone app Snapchat by putting out quick, short videos about daily life as a property developer. So if you are in property and you do want to get to know your clients, but are still under any doubt about the power of social media for property and investment marketing, let the silence surrounding the above quote spur you into action. Go for gold!
Crowdfunding in 2017
With two successes now under our belts and a whole group of new investors on board our projects, we are not stopping here. Early 2017 will see a brand new property up for crowdfunding on the Simple Equity platform. For more tips, videos, updates and to see the launch of this and more of our projects, follow us on…you know where.
Twitter: @E8_Developments, @LC_Developments
Facebook: @easteightpropertydevelopment, @LondonCentralDevelopments
Instagram: e8_developments, lc_developments
Linkedin: Nicole Bremner, Marina Conway-Gordon
Pinterest: East Eight