For decades, the real estate community has perceived architects as “artistic” types who design well but can’t crunch the numbers. This stereotype has become somewhat rooted in reality because of the flawed education system lacking in business instruction. Thankfully, over the last decade, there have been studios and individuals who proved that the transition in real estate development from working strictly in design to having more creative and business control is a viable option. Compared to other archipreneurial business models, architects pursuing real estate development is one the riskiest endeavours because of the cut-throat nature of the industry and the difficulty of getting a in the door. Nevertheless, it is possibly the most rewarding path.

Even should you feel that you lack business skills, background in architecture can give a competitive edge because you understand the process of building. For instance, many project managers in smaller architecture firms perform various roles such as recognizing potential locations that real estate developers might miss and spending a lot of time honing presentation skills. Additionally, over time, most working architects gain experience in specific typologies or areas in the AEC industry. This familiarity coupled with the ability to gradually add real estate development to their portfolio allows these architects to become design-builders.

In deciding to make this shift, your first project will depend on several circumstances including whether you already have a day job and want a low-risk scenario or if you’re completely dedicated in time and resources to pivoting towards real estate. Alternatively, you could take relevant courses, earn a MBA or real estate development degree, reach out to experienced peers for advice or mentorship, and look into work opportunities to learn and build competency under knowledgeable people or real estate developers.

Different Approaches to Become an Architect as Developer

For more specific scenarios, the following are proven paths on which to transition from architecture to real estate and become an architect as developer:

Build Your Own House

According to the acclaimed architect-developer Jonathan Segal, building your own house is the No. 1 recommended course for architects who want to start developing their own projects. You are able to cut design costs, learn about the different aspects of real estate, build a network of collaborators, and perhaps create a blog documenting the entire process in order to reach out to potential clients and other interested parties. As such, the completed project can be an excellent marketing asset and turn you from a DIY builder into a design-build expert just like Zeke Freeman, principal architect at Root Architecture + Development.

Renovate Existing Buildings

Once you’ve found and bought the right property to renovate, you need to arrange financing. To avoid overinvesting and overcomplicating the design of a first development project, you can take out a mortgage or a bank loan; release equity from your own property to re-invest in the new; or sell, rent out, or remortgage the renovated property. If this seems like a plausible path for you, a inspiring example of an architect who got into real estate development through renovation projects is Cary Tamarkin. He purchased and renovated 140 Perry Street in New York’s West Village at the tail end of a recession, a beginning success that led to his firm being one of the leading design-builds in the United States.

Build Co-Housing Communities

To learn on site and avoid assuming all the risks of development, residents and architects are able to have more control over project development by building co-housing. The two most common models of this are co-operatives and condominiums. These differ in terms of ownership, financing, and the architect’s level of involvement. By teaming up with communities, architects can share financial risks, receive part of the profit, and get their project off the ground. For more on personal experiences with co-housing, check out our interview with Berlin-based architect-developer Matthew Griffin.

Crowdfund Your First Project

By generating public excitement about your project from its origins to its completion, you can use several models of crowdfunding, a route specific to the online world. These can be small, innovative prefab structures, projects on locations of great public interest, etc. You can choose to use the donation-, reward-, pre-sales-, lending- or investment-based crowdfunding options, as well as choose between different types of campaigns to mitigate financial risks. If you’re looking to learn more on this topic, here is comprehensive list of all the crowdfunding models architects can use to finance their first development projects.

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What are your experiences with getting a project of the ground? Please share your experiences in the comments below or join The Archipreneur Community to meet your fellow Archipreneurs.

The post 4 Ways to Become an Architect as Developer appeared first on Archipreneur.

Last week we shared with you 5 essentials models you should know in crowdfunding for architects. Today we present you 6 successfully crowdfunded architecture projects:

Crowdfunded Architecture Lowline by James Ramsey and Dan Barasch

One of the most notable ones is Lowline. The project to repurpose the old Williamsburg Bridge Trolley Terminal under Delancey Street in New York City into a public green space was envisioned by Lowline co-founders James Ramsey and Dan Barasch. They discovered the space several years ago and saw its potential as a kind of underground version of the High Line.

After presenting their idea to the Metropolitan Transportation Authority, which controls the space, they created a Kickstarter campaign to raise $100,000, which would pay for the Lowline Lab, an open laboratory and technical exhibit designed to test and showcase how the Lowline will grow and sustain plants underground. The proposal raised almost $224,000 through its latest campaign, making it “the most funded Public Art project” on the popular crowdfunding platform to date. The Lowline Lab ran from October 2015 through February 2017, the permanent space however is pending.

See the kickstarter campaign here.

Splash House by Parsons Design Workshop

Another crowdfunding success is located north of the proposed Lowline. Graduate architecture students from Parsons The New School for Design recently completed Splash House-pool pavilion, which was also funded through Kickstarter. Despite the support of individuals and corporations, the team needed additional funding to start construction.

Their goal was $15,000, which they exceeded by scoring $16,493 from 232 backers, many of whom lived or worked in the neighborhood.

See the kickstarter campaign here.

The Jennings Hotel

The world’s first crowdfunded hotel and artist residency was realized by Greg Hennes in Oregon. In a recent interview the entrepreneur and founder of The Jennings Hotel spoke about his crowdfunding campaign.

Greg bought the century-old building in Joseph, Oregon, in 2014. The preparation and shooting of the Kickstarter campaign took 6-8 months, but it was a success. The goal of $80,000 was exceeded by raising $107,070 from 870 backers. He could redevelop the building – then a mess of run-down apartments and offices – back to its former beauty as an eight-room hotel and artist residency. You can now book the rooms via Airbnb.

See the kickstarter campaign here.

Cabin Spacey

Another way to use crowdfunding is to get seedfunding for your project. You can compare crowdfunding in this initial stage of a new business to approaching investors including friends, family and neighbors, and asking them to give you money. 

The architect duo of  CABIN SPACEY launched a successful crowdfunding campaign to raise money to build a prototype of their innovation: tiny cabins, that will be located on cities’ existing and yet unused spaces – rooftops, parking decks, gable walls and temporary lots.

In an interview with Archipreneur the architects stressed, that you have to be aware of the work it will take:

Producing this [campaign] material needs care, time and deliberation; one shouldn’t underestimate that. The more time you have to focus on the preparation, the better your campaign will feel and the more fun you will have in promoting your baby.

139 backers raised $30,848 exceeding the goal by 106%.

See the indiegogo campaign here.

Steam Ring Generator by BIG

Even starchitects are starting to embrace crowdfunding. In 2015, Bjarke Ingels launched a crowdfunding campaign on Kickstarter to realize a prototype of their “steam ring generator”, in Copenhagen – a steam chimney for the world’s “cleanest power plant in the world”. We spoke with Jakob Lange, Partner at BIG and Head of the BIG Ideas project unit, about the the steam ring generator in our interview.

The team exceeded their $15,000 goal, with 399 backers pledging a total of $29,520.

See the kickstarter campaign here.

Maketto

The brothers Daniel and Ben Miller made crowdfunded architecture their business model and told us about it in an interview. They founded the crowdfunding platform Fundrise with the vision to completely democratize real estate investment by removing the middlemen and the outdated regulations that restricted who and how people can invest in real estate.

It was a success, their first project was a unique urban boutique project in Washington D.C. called Maketto – a hybrid, half-retail, half-restaurant. It was the platform’s first offering when it launched in 2012 – back before anyone knew about the possibility of crowdfunding real estate.

It raised $325,000 from 175 individual investors who invested from $100 to $10,000 into the crowdfunded architecture project to support the launch of a new business.

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Do you know more successful crowdfunded architecture projects? Tell us about them in the comments.

The post Build Your Own: 6 Successfully Crowdfunded Architecture Projects appeared first on Archipreneur.

This week’s interview is with paper planes e.V., the initiative behind the project Radbahn.

The team behind paper planes e.V. consists of architects, urban planners, cultural managers and entrepreneurs. Their goal is to develop Berlin into a bike-friendly city by transforming the forgotten space underneath Berlin’s famous elevated subway line “U1” into a bike path connecting Bahnhof Zoo in the west all the way to Oberbaum bridge in the east. The vision of Radbahn is not only to create space for contemporary mobility, but also for innovation and leisure.

The team has just produced a 140-page book proving that the implementation of Radbahn is possible. Right now the people behind paper planes e.V. are engaging with decision makers, current and future partners and other coalition members to ensure that Radbahn will be build in the near future – we sure hope so!

You can help turn this vision into reality by supporting their crowdfunding campaign! See more crowdfunded architecture projects here.

We spoke with one of the members of the initiative, Matthias Heskamp, an architect who studied under Álvaro Siza for 10 years in Porto and has led projects for David Chipperfield Architects in Berlin. As the head of the association, he now dedicates himself full-time to paper planes e.V.

Enjoy the interview!

You combined your knowledge of architecture, urban planning and development and business to make Berlin a better place – at least for cyclists. Could you tell us how you met and what your respective backgrounds are?

Initiative projects usually start with a problem. In our case the problem was detected by Martti Mela, an entrepreneur, on one of these rainy days in Berlin. He rang me up, asking, why it is not possible to ride his bike underneath the elevated U1? One day later we met with a group of architect friends to examine the situation and came up with an intriguing proposal.

The team quickly grew to eight members of different fields, a professional in campaigning with business background, a cultural manager, an expert of integrational traffic planning, an urban planner and various architects.

When did you come up with the concept for Radbahn? What inspired you?

The idea arose end of September 2014. We have been working for one year on the concept for Radbahn and then launched it to the public in November 2015.

The unused, predominantly abandoned space under the elevated listed U1 construction inspired us to come up with a unique solution for covered and save cycling, space for culture and leisure activities and most important: a testbed for innovative intermodal mobility concepts and sustainable energy use.

Your concept for the Radbahn has won prices and was mentioned in the press worldwide. Why does the Radbahn not exist yet, what are the obstacles?

We got worldwide recognition for the concept, which proves that the idea has been very convincing. We were aware that at the time of going to public in November 2015, it didn’t show, how we would imagine Radbahn to be build in detail and how to solve intersections with car traffic. We sensed not only the need to come up with detailed proposals for that but further to outline the vast field of possibilities and chances for Berlin going along with the realization of Radbahn.

The result is a comprehensive study called “Radbahn Berlin”, a book with 140 pages, which we have launched recently, end of May 2017.

You have just launched a Startnext campaign. What is your goal?

Raising 17,000 Euros would allow us to finally get the book printed and start sending copies of it to key politicians and other influencers in Berlin. This is, what we achieved already thanks to the amazing support we got so far. Our next threshold is to reach 30,000 Euro to make it possible to dedicate more time to push Radbahn forward over the next three month. If we reach our goal of 40,000 Euro, we will organize a public street party in fall 2017, obviously located under the U1.

What major problems and opportunities do you think cities face in the 21^st century?

The future of quickly rising cities is painted mostly negatively. Main topics are traffic congestion and air pollution. If we would see the chance in contemporary technology, which facilitates effective ways of intermodal mobility, sharing economy, energy harvesting we would be able to create amazing scenarios for sustainable cities, scaled back to human proportion. The trend of home office working make people tend to care about there districts they are living in. Local communities help cities to face global problems.

And how about Berlin?

Berlin is a city with low density, thus it does have a lot of space to allow for pedestrian and bike-friendly infrastructure. It furthermore is high in ranking regarding people who prefer to use sustainable means of transport. Generally Berlin has a young and open spirit, which would help to position the city to be the leading one regarding a modern mobility concept.

Do you have any advice for archipreneurs who are interested in starting their own business?

The idea and conviction for a project comes first. Bring potential stakeholders on board from the very beginning. Release early stages of a project on social media, to get a sense of public recognition. Networking will allow you to share work, and have a broader community to strive for the potential realization of your initiative.

How do you see the future of the architectural profession? In which areas (outside of traditional practice) can you see major opportunities for up and coming developers and architects?

Architects will have to assume more responsibility to influence tendencies of urban developments. If the driving force would only come from investors and authorities, we would lack the vision for a comprehensive understanding of chances for the cities of tomorrow.

About Radbahn/Paper planes e.V.

The team behind the Radbahn formed a registered nonprofit association called paper planes e.V. in summer 2016. Our goal is to research innovative social and technological concepts that make urban spaces more people-oriented and environmentally friendly for more livable cities.

We believe that increasing urbanization brings with it great opportunities. If we manage to make the right investments in our cities, it will not only be possible to make our everyday environment more livable, but we can also tackle today’s major global challenges.

Our ‘paper planes’ are designed to inspire as many people as possible about the exciting opportunities of tomorrow. To make it happen, we develop concrete concepts, carry out comprehensive project planning and promote our ideas with convincing communication.

The post Radbahn for Berlin: Converting Forgotten Space for Contemporary Mobility and Innovation appeared first on Archipreneur.

Conventionally, architects’ role in funding projects is extremely limited. However, through crowdfunding, their involvement in the development of architectural projects becomes much more prominent. This allows entrepreneurially minded architects to shepherd the development process themselves, learn to engage the public, market their work and take control of the business aspect of their profession.

While the blanket term “crowdfunding” describes a rather straightforward idea of raising contributions from a large number of people, it is important to get educated on the many nuances, pros and cons of using specific web-based fundraising platforms, its models and potentials.

There are 5 main funding models available in crowdfunding:

1. The donation-based model is the most straightforward way to crowdfund a project. It relies on making contributions with no financial gain. Backers find their reward in the satisfaction of knowing they supported a good cause. This model is used mostly for community-focused projects and charities.
2. With reward-based crowdfunding, backers can pledge varying amounts of money and, in return for backing a project, they receive special perks and rewards in return. Kickstarter is the largest rewards-based crowdfunding platform, followed by Indiegogo.
3. Pre-sales based crowdfunding is mostly relevant for those building products. Offering pre-sales is a popular method to enthuse the crowd, offering the finished product in return for their contributions. Unlike with the reward-based model, pre-sales come with a fixed price based on market value and production costs.
4. Crowdfunding platforms often offer lending possibilities to entrepreneurs and investors. Lending-based crowdfunding offers peer-to-peer lending, or P2PL and cuts out the middleman so that those who receive the support can benefit from lower interest rates.
5. With investment-based crowdfunding, backers can receive equity in the companies they support, gaining more control over the project.

The recent popularity of community-funded architecture reached the AIA to launch its own crowdfunding initiative and publish a report “Crowdfunding Architecture,” which looks into ways this new trend is affecting the field of architecture. The report concludes that “donation-based crowdfunding” is the most promising model for architects and developers.

Archipreneurs can choose one of two types of campaigns: “All-Or-Nothing” (AON) or “Keep-All”. The “All-Or-Nothing” (AON) type involves the entrepreneurial firm setting a fundraising goal and keeping nothing unless the goal is achieved. The “Keep-All” (KIA) involves the entrepreneurial firm setting a fundraising goal and keeping the entire amount raised, regardless of whether or not they meet their goal.

Another variation is the Tipping Point model, which means that, until tipping point is reached, the crowdfunding model is All-Or-Nothing; beyond tipping point the model changes to Keep-All. The Tipping Point refers to a minimum amount of funds that must be reached in order to be able to keep donations. Some platforms will provide creators with an immediate access to funds beyond the tipping point. Kickstarter only offers the All-Or-Nothing funding model, while Indiegogo offers both the All-Or-Nothing and Keep-All options. Other emerging platforms are RocketHub, FundRazr, StartSomeGood, GoFundMe, Fundrise, Groundbreaker, and Crowdstreet (the three latter ones focus on real estate – read the interview with the Fundrise founders here).

While the Keep-All model may seem like the safer option, studies have shown that doing an All-Or-Nothing campaign is more likely to give good results. Researchers at Toronto’s York University and Université Lille Nord de France in Lille, France, teamed up to compare results of these two types of campaigns and reached a conclusion that “overall, [All-Or-Nothing] fundraising campaigns involved substantially larger capital goals, and were much more likely to be successful at achieving their goals.”

Depending on the type of project you need to fund, you have to take into account several factors before going into it. These four points sum up the most important aspects of the process and provide an outline of what needs to be done before committing to a campaign.

1. Carefully choose crowdfunding platform – How big is the network of users on your chosen platform? How much of a cut does the site take? Does the site offer adequate support and promotion during a campaign? Does the site suit your type of project?
2. Inspire and inform – You need to make potential backers/investors feel connected to the project. They should feel like part of an inspiring undertaking. Once you get their attention, make sure you keep it by engaging them. You do this by telling a great story!
3. Prepare in advance – You won’t get investors unless your idea is fully rounded and clear. You need to flesh-out ideas before starting a campaign. Also, make sure to do the necessary research and create as much support for the project before it launches. If you can, find a first or lead investor to invest before you launch your campaign. This makes the campaign appear more attractive from the onset, and push the value of individual pledges.
4. Calculate rewards – If you decide to use the reward-based model, you will need to determine the best pricing for your rewards in relation to perceived value, market competition, and your funding goals. You need to factor in all the relevant costs, including marketing, manufacturing, design and shipping.

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Check out this article to learn about 6 successfully crowdfunded architecture projects. Have you ever crowdfunded a project? Let us know about your experiences.

The post Crowdfunding for Architects: 5 Essentials Models You Should Know appeared first on Archipreneur.

Greg’s career as an entrepreneur has gone in various directions. He is the co-owner of a camera equipment rental business in Portland, he created the brand and online shop antler&co selling bookshelves, hangers, and mobiles all made of (you guessed it) deer antlers, and his ironic product Campfire Cologne, a box of sticks that smell like “your best summer ever” is sold at various retailers worldwide, including Urban Outfitters.

When Greg came across The Jennings Hotel in Joseph, Oregon, it was love at first sight. He bought the century-old building in 2014 and launched a Kickstarter campaign to redevelop the building – then a mess of run-down apartments and offices – back to its former beauty as an eight-room hotel and artist residency.

Greg brought together seven artists and designers to each transform one of the hotel’s rooms. As an experienced builder and having built his own cabin, Greg did most of the remodeling work himself and transformed the eighth room.

Keep reading to learn from this self-proclaimed “dreamer-entrepreneur” and see images of the redeveloped Jennings Hotel.

Enjoy the interview!

Could you tell us a little about your background?

There’s no single thread, I just chase what excites me and see if I can make it work. I started my first business – a photo equipment rental shop – in 2006, then built a brand called antler&co, created campfire cologne, co-founded a holiday market (the Portland bazaar) and now work full time on the Jennings. Somewhere in there I built the cabin, too.

You raised money on Kickstarter to transform an over 100-year-old hotel in Joseph, Oregon, to its former beauty. Can you tell us a little about your process to get the crowdfunding campaign going?

It was a lot of work and it was very collaborative. I worked with my friend Leah Brown on the video and talked a ton to other folks I know who’d run kickstarter campaigns. No one had ever tried what I was doing, so it was a bit of a risk, but the results were wonderful and the feedback I got was all very positive. It took about 6-8 months of preparation and shooting.

Did you raise this money for the whole remodeling project, and was it enough?

The campaign was for general remodeling costs, but I knew from the get go it wouldn’t be anywhere close to what I’d need in total. I wanted to be realistic about my goal, which was $80,000 ­– I raised $107,070 – and exceeding it by 33% felt spectacular.

What was the biggest challenge in the redevelopment process?

The challenges continue, but in my case it has been labor. I’ve been doing most of the work myself out of necessity, but this winter I’ll be hiring a couple folks to help me get shit done and hopefully be more or less fully operational by late spring 2017.

The Jennings hotel is now open for business. How is it working out; are you happy with the result?

It’s working great. I’ve got an amazing innkeeper, and it’s been incredible meeting and connecting with the folks who’ve come to stay.

What is your next project? Are you planning another real estate project?

The $64,000 question. I’m working on starting a folk school in Joseph and I’m always looking at other potential hospitality projects, both in Oregon and elsewhere.

Do you have any advice for Archipreneurs who want to start and build their own business?

Dream big, be realistic, do good work, be nice, make cool shit, know your limits and sharpen your pencil.

About Greg Hennes

Greg Hennes is a wild haired, serial dreamer-entrepreneur. When he’s not swinging a hammer at The Jennings Hotel, you can find him running around in the mountains or trying to ride a moose at his cabin in Northern Minnesota.

The post How to Redevelop a 100-Year-Old Hotel through Crowdfunding – with Greg Hennes appeared first on Archipreneur.