REAL ESTATE ENTREPRENURS: HOW THEY GET FUNDING?

Abstract

ABSTRACT There has been an increasing interest for entrepreneurs to get involved in real estate. Several factors are the cause of this interest: Low interest rates, lack of interest to have a regular job and an increase of interest to obtain financial freedom. In certain areas the increasing rate of unemployment, especially in developing countries has forced governments and individual job-seekers to shift their focus towards entrepreneurship with the objective of addressing unemployment and promoting economic growth. Globalization and technological advancements have created numerous opportunities for entrepreneurs in both domestic and international industries. The creation and development of new businesses is however affected by factors such as lack of access to adequate funding which has seen many unique ideas go to waste. One of the industries that have attracted the attention for entrepreneurs in recent years is real estate which is concerned with the development of commercial, residential, and industrial buildings. Given that the challenge of accessing financing is faced by all entrepreneurs regardless of the industry or nature of the business, it is essential to evaluate some of the sources of funding available in the current business environment to help create awareness and promote entrepreneurship in real estate. Keywords funding, capital access, financial institutions, private investors, crowd funding.