Step-By-Step Guide to Building a Real Estate Crowdfunding Platform

Understanding What are Real Estate Crowdfunding Platforms

Real estate crowdfunding platforms are web or mobile apps made to pool small amounts of capital from multiple investors for usage in real estate endeavors.Several parties are involved in the development of a real estate crowdfunding platform. Real estate crowdfunding is a cutting-edge and gaining popular way to diversify your financial holdings. It appeals to investors of various ages and investment tastes. Crowdfunding allows you and other investors to pool your money online to purchase all or just some real estate.

Dynamic Features of Real Estate Crowdfunding Platforms

1. Check for KYC or AML A crucial component of any platform for real estate crowdfunding or REITs is conducting due diligence on its members. Users can request that the space link their bank accounts to authenticate the identity of the stakeholders and determine the source of income.

2. Login: Send in After completing the KYC and AML procedures, the sign-up/sign-in process is the following step. Usually, investors are offered two ways to log in: via email and password or social media.

3. Project Data: It is essential to have a section on the initial screen of your real estate crowdfunding investment platform where all the projects are shown with their data, including the description, investment size, target duration, and estimated annual returns.

4. Investors Page: Your real estate crowdfunding platform should have a dedicated area for investors. Here, they may enter their financial objectives, link a bank account, and see a dashboard view of their portfolio that is divided into different categories.

5. Returns Calculator: An intuitive returns calculator is another essential component of REIT platform providers like Fundrise. An integrated earning projection and mortgage calculator tool is a feature of every user-friendly investment platform, allowing investors to forecast their profits.

Steps to Build a Real Estate Crowdfunding Platform

Step 1: Business Evaluation

Forming a project scope is the first stage in developing a real estate crowdfunding platform. When Osiz takes on a crowdfunding app project, we begin by developing an information architecture that emphasizes the user flow and user demographic. This provides a decent overview of the feature sets and displays.

Step 2: Design UI/UX 

Platforms for real estate crowdfunding, such as Fundrise, usually include an abundance of information, including calculators, an investment dashboard, and details on several projects. Organizing this data in one location may make the applications appear cluttered and overflowing with data. Creating a minimalist design with an intuitive, natural user flow is the answer to this problem.

Step 3: Development

All of the engineering work for apps like Fundrise is done here. Businesses typically collaborate with real estate app development firms to streamline this aspect of the procedure. Currently, several factors, including the tech stack, functionality, and API selection, are taken into account to make the platform reliable.

Step 4: Launch

The application has to go live on the Play Store and App Store after the real estate investment platform is built. At Osiz, post-launch maintenance is usually included in the service bundle along with this product.

What's the Cost to Build a Real Estate Crowdfunding Platform?

The cost of developing a real estate crowdfunding platform depends on several aspects, the most important of which are the app development agency's location, the feature sets chosen, the technologies employed, and the size of the team. Based on the elements stated in the article, the project may cost between $120,000 and $200,000, while an exact estimate cannot be given without knowing the full scope of the work. However, if you collaborate with teams in the US or the UK, where the average hourly cost of development is between $120 and $150 rather than $80-$100 in India, this number may change.

How to Gain Money from Your Real Estate Crowdfunding Platform?

Advising Fees: If you provide yearly advising services, you may charge a small fee. This payment may be made to inform investors about the project's progress, disburse dividends, and inform them of the tax advantages.

Management Fees: To oversee the continuous operational costs of several real estate projects added to the platform's investor portfolios, you may charge a percentage of the money.

Early Redemption Fees: You may charge investors between one and three percent of their initial investment if they cash out before five years have passed.

Why Choose Osiz to Build a Real Estate Crowdfunding Platform?

Osiz is a notable blockchain development company that offers the best real estate crowdfunding platform solutions. Although they are less well-known, crowdfunding and REIT investments are becoming more and more popular among investors and real estate. Numerous platforms for real estate investment have arisen in response to this strong demand. Still, there is room for innovation in this field to lead to a successful company plan. We hope that the knowledge you have gained from this site will assist you in creating a successful crowdfunding website. If you encounter any difficulties during the procedure or find its progress to be difficult, we are available to assist you.