Unless you never use the internet you’ve probably heard of crowdfunding, the popular trend of sharing your story to the public and asking for donations online; but, did you know that there are some of these sites geared toward helping you achieve your real estate goals? These Sites are designed to help you raise money for a down payment or even renovations and repairs. If you’re not opposed to asking for money in lieu of gifts for your birthday, wedding, anniversary, graduation, or other occasion, then this might be just what you’re looking for.
There are Four Major sites worth mentioning, Hatch My House, Feather The Nest, Honeyfund, and BoostUp. Each one has it’s own unique perks.
- Hatch My House – Hatch My House lets users build a virtual house where guests can “purchase” parts of the home in order to help fund down payment home repair of even decor. Like most of these sites there is a 5% commission from the site for making a donation. However, this particular program has a feature that gives the donator the option to pay the fee for you.
- Feather The Nest – Feather The Nest users create a “nest” that can be donated to or sponsored.This site has partners with guest blogs and real estate agent or mortgage broker referrals that could help to get the word out about your goals.
- Honeyfund – Originally set up as a honeymoon registry, Honeyfund now offers funds for any occasion. You could fund your new home, renovation, vacation or even smaller things like cooking classes.
- BoostUp – BoostUp is geared toward saving for a new home or a new car. You can create a profile like the other sites; however, this is the only one of the sites that parters with brands that may match your savings. Say you have $3,000 already saved and your looking for a new home, a lender may choose to match all or a portion or your savings. It’s a very efficient way to save for a down payment.
When creating a profile on any of these websites, you’ll need to share the story of exactly what you need the funds for. You should talk about what neighborhood you would like to buy in and what qualities you are looking for in your new home. You’ll also need to set up a PayPal account to go along with your profile as most of these platforms require one to receive cash gifts. After you’ve created your profile you’ll be given a personal URL to share with friends and family.
It’s also important to keep your beneficiaries informed of the progress of your home buying process. People will appreciate knowing what specifically their money has been used for. Also, in the case that you do not raise enough money to buy a home, you should always let every contributor know what happened and what your new plans for the money are. Not staying in contact may give your helpful friends the impression that you deceived them to mooch money off of them.