Let’s talk about the booming crowdfunding real estate development sector! Discover a full guide on how to create a scalable and secure platform, overcoming regulatory, technical, and user-experience hurdles.
Highlights:
- With real estate crowdfunding platforms, individuals can become investors with just a few clicks.
- By 2033, the global real estate crowdfunding market is expected to reach $569.2 billion.
- The technology and design of the crowdfunding platform is a key point in attracting new investment opportunities.
Establishing an online real estate investment platform is more than just the next big trend. Many entrepreneurs today are willing to start crowdfunding real estate development and boost their company’s growth. As the crowdfunding investment market is expected to boom, now it’s the best time to enter this space.
Of course, while building crowdfunding real estate startups, founders face various challenges, such as dealing with bureaucracies, maintaining the platform's security, and designing user interfaces that build consumer trust.
That is where Mind Studios comes to the aid. Don’t worry; we are here to clarify the process and assist in overcoming challenges while you remain focused on your goals! Having vast experience in custom software development, especially in the real estate niche, we offer compliant and secure crowdfunding platforms made for success.
Based on our successful cases, like Mulki — the first-of-its-kind real estate management app, created to assist real estate owners in their day-to-day operations — we can guarantee the uniqueness and high technological capability of your platform. Our team provides analysis and does most of the work while you get the benefit of stress-free development.
Note: Don't rush to move to another page; at the end, you will find a complete step-by-step checklist with the unique tips on how to build your crowdfunding platform that attracts investors!
If you still consider crowdfunding real estate development a complicated process, we invite you to discover the other side! Simplify the development in one click by contacting our experts — we will answer all your questions about crowdfunding platform creation!
Understanding the crowdfunding real estate development
Real estate crowdfunding is a relatively new solution that enables investors to collectively put up some real estate projects.
The concept of crowdfunding
Unlike other funding models, in which large investors or wealthy individuals are prominent, crowdfunding puts everyone on the same level, bringing a sense of equity. Now, every person can join real estate deals that were previously available to only a select few, investing as little as a couple of hundred bucks.
This approach has gained much attention. By the end of 2024, the crowdfunding market size in real estate reached $17.8 billion, and it is expected to rise at a rate of more than 25% annually. The open access to this funding method has already attracted thousands of investors.
Here’s why so many people are wondering how to start a real estate crowdfunding business:
| Benefit | Explanation |
|---|---|
| Accessibility | Low entry barriers allow more people to make an investment. |
| Diversification | Investors can perform fundraising for multiple projects, reducing risk. |
| Efficiency | Developers secure funding faster compared to the traditional financing methods. |
| Transparency | Crowdfunding platforms contain a wealth of information about each project, building trust among the users. |
Mind Studios tip: However, that kind of growth comes with increased competition, so you have to watch your back all the time. Lots of crowdfunding platforms are currently operating globally and seeking investors' attention. To stand out, your platform needs to be the first in terms of functionality, security, and usability.
Keep this in mind when choosing your crowdfunding real estate development partner. This decision can make or break your business.
If you are looking for a reliable crowdfunding real estate development partner, reach out to the Mind Studios team!
How does real estate crowdfunding work?
According to our experience, it operates in three simple steps:
This basic but powerful process creates opportunities for developers to find funding and for investors to receive passive income.
Why real estate crowdfunding platforms are a profitable decision
So, you may ask: why do I hear so much about property crowdfunding nowadays? And here is an answer! Because it has significant importance in connecting the sides of demand and supply, or in our context — developers and investors.
Based on our experience, here are three main reasons why they are indispensable:
- They provide the ability to boost profits: businesses have been able to increase project funding by 40% through crowdfunding platforms, compared with traditional ways of fundraising.
- They offer various ways to expand the audience: different types of platforms appeal to different types of players — from experienced market participants to individuals with no experience in investing in real estate.
- They make a business trustworthy: transparency indicators, such as project updates and financial forecasts, actually facilitate credibility and investor retention.
Crowdfunding is not only a funding model but also a way to bring innovation and diversification. It levels the ground between buyers and sellers, creating chances for everyone.
“Crowdfunding is not just a funding tool — it’s a bridge to innovation and inclusivity. It levels the playing field, offering opportunities for businesses and investors alike. That is why crowdfunding platforms have become so popular in the modern real estate market."
– states Dmytro Dobrytskyi, CEO of Mind Studios.
All in all, the concept of real estate crowdfunding will become even more crucial in the following years, and it’s important to keep up with the modern market!
If you are not sure what your crowdfunding platform should look like, contact us to get a FREE consultation. During the years of working with real estate businesses, our professionals have developed a knack for successful projects!
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5 Must-have features of top real estate crowdfunding platforms
Building a successful platform is not just about coming up with a great idea and venturing into the market. So, how to start a real estate crowdfunding platform?
To begin, the platform needs to have key features necessary to attract target clients, providing simple and efficient means of completing required operations and maintaining compliance.
Now, we will use our experience to highlight the main features every crowdfunding platform should have.
User registration and authentication
First and foremost, clear, secure, and simple registration and authentication are crucial for any platform. It should include:
- Secure sign-up/login: implementing multifactor authentication (MFA) to improve the security level of the user base.
- User roles: defining investors and developers to grant a different set of functionalities.
- Identity verification: the necessity to conduct operations with clients based on compliance with KYC (Know Your Customer) requirements.
Note:
KYC (Know Your Customer) rules are legal requirements that offer certain protection to businesses against fraud, money laundering, and other unlawful activities by forcing companies to identify their customers.
Such checks are important to keep user identity transparent and secure. This is done by confirming the identity of the users through ID, utility bills, or financial records.
Businesses it suits the most:
- Platforms targeting a wide range of users: public investors, developers, and institutional consumers.
- Businesses performing in areas with formal and strict legalities.
Mind Studios’ experience:
When developing Mulki, a real estate management app, we added strong authentication features to make the registration easy and secure for investors and developers. The effect was a more stable environment that gained the trust of the users.
Project submission forms
Developers always require a system that can present the projects to the funders in simple ways. Submission forms should include:
- Essential subfields for the descriptions of the project, including the timeline and funding objectives.
- Validation to make sure that if there is some important data that should be given, it is given.
Why it matters: simplified forms minimize errors and improve the user experience to guarantee that projects conform to the platform requirements.
Businesses it suits the most:
- Almost all the crowdfunding platforms, targeting numerous developers with a variety of projects.
- Startups aiming to attract projects quickly and scale operations.
Mind Studios’ experience:
Working on the Rentorr project, we designed easily fillable submission forms with many fields, which made it easy for the developers to make sure they provided all the necessary details. It made a platform user-oriented and resulted in an increased client satisfaction rate.
Legal compliance checks
Regulatory compliance is a non-negotiable aspect of crowdfunding. Features should include:
- AML (anti-money laundering) checks
- SEC investment limits and reporting
- Tax documentation for users.
Note:
AML checks, SEC investment limits, and tax documents are formalities that aim at controlling compliance with strict industry regulations. They protect businesses against fraud, make processes transparent to improve user trust, and keep both legal and ethical requirements on financial transactions in mind.
Why it matters: these checks serve to protect your platform from any legal risks and thus increase investors' trust.
Mind Studios’ tip:
Always make sure your crowdfunding real estate development partner knows how to keep up with regulatory compliance issues. This is a crucial moment, which can determine the fate of your platform. Contact us for a free consultation to become a professional in terms of regulatory compliance!
Third-party integration
For all crowdfunding platforms, it is crucial to implement new functionality through external tools, such as:
- Payment gateways (e.g., Stripe, PayPal)
- Geolocation services (e.g., Google Maps)
- Marketing platforms for user engagement.
Businesses it suits the most:
- Platforms with advanced features that improve user experience.
- Businesses that require fast financial transactions or location-based property information.
Mind Studios’ tip:
Remember: choosing the right payment gateway for your online real estate business is an important part that can be quite confusing. There are so many things to consider, such as fees, recurring billing, and even currency support. If you need any assistance on this topic, read our complete guide below!
Payment functionality
Of course, a secure and effective payment system is critical for user trust and platform success. It should always include:
- Multi-method payment support (credit cards, bank transfers, digital wallets).
- Secure escrow services for holding funds.
- Automated payouts to boost and protect investor returns.
Why it matters: appropriate and easy payment structures increase activity and achieve high user retention.
Mind Studios’ experience:
Working on the Mulki project, our team has implemented secure payments, which made transactions secure, effective, and reliable. This resulted in the high level of consumer trust and retention.
Implementing all these features may seem overwhelming, but it is one of the most impactful factors for your future success. Feel lost in all the tools? Let Mind Studios’ tech experts assist you — contact our tech team!
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Real estate crowdfunding platforms to learn lessons from
It is not a secret that large, successful projects always inspire us! Analyzing the real estate crowdfunding market leaders can help us identify the best practices and results of various models and approaches. This table demonstrates the unique paths of some popular crowdfunding platforms, the problems they solve, their business impact, and statistics.
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Business outcomes |
Statistics |
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These popular crowdfunding platforms have successfully overcome all the industry challenges and become the real market leaders. But there is nothing impossible, right? Especially with Mind Studios’ assistance.
Inspired by their success? It’s time to become one of them — contact us right now!
How much does it cost to develop various crowdfunding platforms?
The cost of crowdfunding real estate development seriously depends on the specialization, non-triviality, and functionality of the platform. When you ask yourself how to invest in crowdfunded real estate, you should always be informed about the platform’s costs. Here is the approximate cost and time estimation based on our experience.
| Platform type | Key features | Estimated cost (USD) | Development time (Months) | Best-suited businesses |
|---|---|---|---|---|
| Residential crowdfunding |
|
86 400 - 129 000 | 4 - 6 months | Startups or businesses targeting first-time investors with small to medium-sized projects. |
| Commercial crowdfunding |
|
132 000 - 172 800 | 6 - 8 months | Real estate companies focused on high-value commercial properties and seasoned investors seeking detailed investment data. |
| Eco-friendly platforms |
|
108 000 - 151 200 | 5 - 7 months | Companies focusing on sustainable or green real estate projects appealing to values-driven investors. |
| Debt-based platforms |
|
86 400 - 129 000 | 4 - 6 months | Financial institutions or developers seeking an alternative to traditional loans, targeting investors interested in fixed returns. |
| Equity-based platforms |
|
172 800 - 259 200 | 8 - 12 months | Platforms targeting long-term real estate investments with higher returns, ideal for larger or institutional investors. |
| Hybrid crowdfunding |
|
216 000 - 280 800 | 10 - 13 months | Businesses focusing on a wide investor base with various preferences and a mix of short-term and long-term project opportunities. |
All the estimates defined above are quite rough and are meant to provide you with at least an initial reference point. The exact cost of crowdfunding real estate development depends on numerous factors, which we can discuss during our free consultation!
Need a complete budget estimation for your project? Contact our professionals to get a free estimation and take that first step towards changing your business!
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Factors influencing your earnings and attraction to investors
When you are wondering how to start real estate crowdfunding, always consider several industry factors that can influence the success of your future platform. The ability to attract investors to a real estate crowdfunding platform depends on some significant parameters. Managing them achieves not only stable revenue but also its source in investors, their trust, and their engagement.
Transparency and trust
Based on our experience, people always prefer platforms that show detailed information about the projects listed online. With daily progress updates and financial projections, customers become more confident and have trust in a business they deal with.
- Why it matters: earning trust makes the clients provide further investments, boosting the platform’s growth.
- How to maximize: provide advanced tools for detailed reporting and open communication channels for developers and investors.
UX design
A clear navigational system is always helpful and can bring the investors’ interaction. Crowdfunding real estate development requires easy navigation, simplicity, adaptability, and individualized interfaces.
- Why it matters: negative experience increases user drop-off and undermines potential earnings for your platform.
- How to maximize: testing your platform during the development phase and optimizing the user journey if needed.
ompetitive monetization model
Of course, choosing the right monetization model (commission, subscription, or freemium) significantly determines the earnings. You should provide your users with access to some services and products at fairly reasonable prices; at the same time, it must be worthwhile for the platform to achieve some reasonable profits.
- Why it matters: a well-structured model is a grant for more transactions and sustained investor activity.
- How to maximize: provide additional services, such as premium property insights and detailed analytics, under subscription plans.
Regulatory compliance and security
Legal and financial compliance is a lead requirement that investors will prioritize using your platform. Performing automated KYC/AML checks and incorporating high-level security measures are a must!
- Why it matters: security of user investment and information helps in building trust and loyalty, providing higher retention rates.
- How to maximize: stay updated on regulations of the specific markets you have chosen and engage professional compliance service providers.
“Increasing income on the crowdfunding platform is not only a question of volume — it is about quality and value. In this regard, transparency, unique experiences, and competitive pricing models will help realize sustainable growth. To stay afloat, check if your platform provides detailed analytics features, grabs high-stakes investors, and guarantees steady month-to-month revenue.”
– states Anton Baryshevskiy, Head of Business Development at Mind Studios.
Final verdict on crowdfunding real estate development
The crowdfunding real estate development is a big chance for innovative changes in the sphere of property real estate investing, attracting a wide range of investors and generating new sources of earnings. That is why it’s crucial to select the right niche, effective design, a set of features, and regulatory compliance coupled with the capacity to scale.
And this is where Mind Studios comes to play!
With our technical skills and market experience, we build platforms that go much beyond the competition. Our effective business concept — based on years of experience and fine-tuned by several projects, like Mulki and Rentorr — guarantees that your platform will meet market demands and exceed your expectations!
Our article comes to the end — we gave you all the information on how to build a crowdfunding platform. Now, it’s your time to take action!
Get in touch with us for professional consultation and, finally, bring your idea to reality!
