Keep the toaster, we’re crowdfunding our down payment
Websites help newlyweds raise money to put toward real estate goals
Newlyweds tend to receive many gifts that end up in the trash or never see the light of day.
Nowadays, many couples have been living together for years before they actually tie the knot, so they’ve probably got the silverware and salt-and-pepper shakers covered.
But what if newlyweds could channel the generosity of all their family and friends towards a big-ticket item of their choosing, like a down payment for a home?
That’s a strategy that people who are set to receive a wave of gifts for a special occasion may take more and more as crowdfunding continues to gain traction.
People have long been using Kickstarter, Indiegogo and other mainstream crowdfunding sites to raise cash for all manner of pursuits.
But more recently, niche crowdfunding sites have been popping up. A number of them focus on helping people raise cash for real estate-related pursuits, including cobbling together enough cash for a down payment.
Feather the Nest, for example, lets users create pages where they can use text, photos and video to describe what real estate aspirations they want contributors to help them fund. Users then share their campaigns through email and their social media accounts.
People can turn to Feather the Nest whenever they want to try to drum up cash for real estate goals, but the site was designed to help people capitalize on the outpouring of generosity that typically comes with special occasions.
The best example would be a wedding, said Harrisburg, Pennsylvania-based Lindsay Oparowski, CEO of Feather the Nest. The spread of honeymoon registries like Honeyfund.com and Traveler’s Joy show that many couples are keen on funneling the goodwill of friends and family towards a single purpose, rather than sitting back to accept a hodgepodge of smaller gifts.
Oparowski envisions soon-to-be-married couples sharing their campaigns for real estate projects with friends and loved ones and posting them to their wedding websites. The campaigns could either complement the wedding gift menus that couples commonly offer up to family and friends, or they could replace them altogether.
That way, you end up with a house, not “mismatched placemats,” Oparowski said.
Feather the Nest isn’t the only company trying to help people crowdfund down payments. Gift registries Hatch My House and DownPaymentDreams.com both target couples who would prefer down payment assistance over cutlery and candlesticks.
Launched by Wilmington-North Carolina-based real estate agent Teresa Krebs, DownPaymentDreams.com acts as an agent referral service, offering couples a refund of the site’s registration fee and a gift card to a home improvement store in exchange for working with an agent handpicked by the site. Krebs said 20 couples a month sign up on average, with close to 800 having registered since the site launched in 2009.
“In this generation, so many people are wanting to buy a house and they already have furnishings and towels and pots and pans and things like that,” Krebs said. “Among my group of friends that’s what people really wanted for a wedding gift — cash for a down payment.”
HomeFunded.com launched last year, but the website is still listed as being in beta testing.
Hatch My House has helped people raise about $1.7 million for down payments, $200,000 for remodeling and renovations and $100,000 for furnishings and decorations, according to Rieve MacEwen, who founded Hatch My House in 2009 with his wife Erin-Marie. More than 2,000 registeries have received funds on the site, he added.
According to Hatch My House, the average price of a wedding gift is $125, while the average number of gifts for a wedding is 70. That means, theoretically, the typical couple using the site would raise $9,000 to put towards a down payment if every wedding gift went towards their campaign.
PRIMARQ is taking a less romantic approach to the enterprise: The crowdfunder is attempting to enable buyers to obtain down payment assistance from investors in exchange for slices of their home equity.
Oparowski, who was previously a marketing director for two brokerages, said that agents could recommend Feather the Nest to people who are on the fence about buying, or use it as a “touchpoint” to maintain contact with past clients.
The site will generate revenue by taking a cut of the funds users raise through campaigns, but also plans to sell sponsorships to agents, where nest owners would receive some cash for permitting an agent’s advertising to appear next to their campaigns.
This article was originally posted on Inman News, June 30, 2014. Written by Teke Wiggin.View the original post at Inman News.
For more information contact Macdonald Realty at 1-877-278-3888
