Buying a home is one of those goals in life that most people have. Though it's not easy, it's definitely worth saving up for. But the bad news is that not a lot of people can't afford to buy one, let alone save up for a mortgage downpayment.
But the good thing is that there are several alternatives to buying a house. If homeownership is the route you would like to take, some programs and grants can help you attain this goal.
You can also consider crowdfunding if you don't have ready cash you need on hand for your downpayment. This practice effectively funds projects by asking a particular number of people to pitch in. There are lots of crowdfunding platforms, such as HomeFundit, that you can take a look at to see which one fits you best.
Crowdfunding in real estate is a fairly new technique in the industry. It will help you kick off that investment in your dream house, but just like anything else out there, this also has its downsides. So evaluating your options before making a huge decision like buying a home is very important.
Why You Should Crowdfund Your Mortgage
While a lot of people are still not convinced by it, crowdfunding your mortgage comes with lots of benefits.
First, there is a good chance that you get to raise the money that you need. Second, crowdfunding platforms are easy to understand and use. And third, you don't even need to go around town or knock on people's doors because everything is done online.
What you need to know about crowdfunding before you start fundraising
Now that you know just how amazing crowdfunding can be for you, it's time to learn a few things. These are a few hard facts that you need to consider just before you start that crowdfunding account.
It won't be easy to persuade potential donors
When you first set up your campaign, you need to make a strong case. There should be a good reason why people should give you their money. You should let people know how much of a great candidate you are for them to fund your mortgage.
Pity partying doesn't cut it for a successful crowdfunding campaign. So, if you want to convince people to support your cause, you need to make a compelling case.
Crowdfunding Cost Money
The crowdfunding platforms that you'll find on the web are businesses. And just like any other business, they need to make a profit out of their clients. That is where you come in.
Depending on which platform you choose, you will be charged a certain amount for the platform and/or processing fees. This may be deducted off the money you manage to raise.
What Happens If You Fail at Crowdfunding?
Amidst all the good things about crowdfunding your mortgage downpayment, there is also that one major drawback.
If you have gathered from the crowdfunding project on actual mortgage downpayment and failed to spend the money correctly, you are building a bad reputation for yourself. This deed will not go unnoticed by the people who supported your cause. And thanks to the internet, you may just be the next viral post.
