“Marketing for CRE Firms” is a four-part series from CrowdStreet CMO Molly Moore. In the series, Moore dives into the strategies CRE In commercial real estate, the sponsor is an individual or company in charge of finding, acquiring and managing the real estate property on behalf of the partnership. The sponsor is usually expected to invest anywhere from 5-20% of the total required equity capital. They are then responsible for raising the remaining funds and acquiring and managing the investment property’s day-to-day... More can use to build brand credibility and drive demand for their commercial real estate offerings.
When considering the option to invest funds in commercial real estate, investors need ways to evaluate the properties and projects available to them by way of online crowdfunding, and they need to feel confidence in the firm they are investing in.
Beyond the basic materials related to the financial documentation of a project, investors are interested in getting an overall sense of the CRE firms associated with the projects they are considering. Investors are likely to run an Internet search to try and understand more about the CRE Sponsor and the company’s track record with previous investments. Because of this, CRE firms must be prepared with a variety of collateral that demonstrates a commitment to providing a high level of transparency.
Add this reality to the fact that historically investors have been able to find out a whole lot more information on stocks and bonds that they could alternately choose to invest in. To meet the needs of today’s modern investor, CRE Sponsors need to present potential investors with detailed insight into available investment offerings.
And this is exactly where digital marketing strategies come into play for CRE firms who are making the move into real estate online crowdfunding as a source for connecting with new investors.
Making the Move Into Digital Marketing
Digital marketing is a broad term that encompasses all aspects of a company’s online marketing, promotion and branding efforts. From website content, blog articles and social media postings, to digital versions of sales collateral, search engine optimization efforts and online advertisements, a successful digital marketing strategy involves the coordination of many moving parts.
Now because most CRE firms are accustomed to promoting themselves in-person via face-to-face interactions, it’s not surprising that many people in the CRE industry are brand new to the world of digital marketing and have been a bit slower to adopt business strategies that place a high value on digital marketing efforts.
This being said, digital marketing has been mainstream as a critical marketing activity for some time, and it’s up to CRE firms to find proactive and reliable ways to reach new investors online.
With advancements in technology that make online crowdfunding possible, and the passing of the JOBS Act, the pool of potential CRE investors is nearly limitless. Which is why if your company is able to project credibility and communicate the value of the investment offerings you’re making available, the sky truly is the limit.
In fact, some CRE firms have leveraged the power of online crowdfunding and digital marketing to raise millions of dollars in mere days of posting a new investment opportunity online.
While these types of results aren’t yet the norm, they do provide forward-thinking CRE firms with a blueprint for how to better reach and communicate value effectively to a large pool of high net worth individual investors (HNWI).
Educating A New Wave of Investors
The key to communicating your firm’s value lies in your ability to educate a new wave of investors about the investment return potentials that are available with commercial real estate.
Many of these HNWI have never invested their money with CRE. Whether due to restrictions that have now been lifted with the JOBS Act, or a lack of personal or social connection with CRE firms in their region, these investors are new to the world of CRE and hungry for more information to help them make a decision about where and how to invest in this asset class.
This investor desire to have more information regarding CRE investment opportunities provides CRE firms the opportunity to meet investor needs with content marketing— a component of digital marketing. Content marketing involves the creation of helpful, educational content to help highlight the value of CRE investing as well as an individual CRE firm’s track record, leadership team and investment approach. Content marketing, when used as part of an overall digital marketing program, can lead to powerful results.
In fact, investing in a content marketing program as part of your company’s overall digital marketing efforts is the most direct way to meet this investor need and be seen as a leader in CRE and a reliable partner for those looking to invest.
CrowdStreet Partner Marketing Program
To assist Sponsors in meeting this investor expectation, CrowdStreet developed a Partner Marketing Program to ensure that all Sponsors have access to the online marketing resources necessary to attract new investors with digital advertising, compelling content and a polished company and brand image.
The CrowdStreet Partner Marketing Program was developed in tandem with PMG, a content marketing and demand generation agency, to enable the success of our valued partners. The program offers CRE Sponsors the marketing support needed to reach new investors online through a variety of marketing packages designed to help you build your company’s brand and drive increased demand for your investment opportunities.
With 15+ years of experience, PMG knows what it takes to attract investors. From creating a trustworthy brand image to developing and maintaining consistent communications, this program has your digital marketing needs covered.
Learn more about the CrowdStreet Partner Marketing Program.