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.

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.

Designing and developing one’s own project may sound like a dream pursuit, but without the initial investment such a vision becomes almost impossible. Several individuals have proved that it is indeed possible for an architect to become their own developer. Architects present valuable skills in the development world, from the expertise required for site analysis and selection, to the ability to follow through with the design details and supervise construction. With the rise of more innovative sources of financing for projects, architects have the potential to step outside their usual roles in serving clients in order to realize their own ideas and designs.

#1 – Crowdfunding

The rise of crowdfunding in recent years has harnessed the power of millions of internet users to finance worthy causes. Some architects and developers have already realized the potential of this financing platform, including renowned Danish architect Bjark Ingels. When speaking about his kickstarter campaign to wired magazine Ingels stated, “One of the inhibitions of the architecture profession is we are limited by the vision of our clients put forward. I’d be curious, if this works, what other proactive ways architects could get ideas out there.”

With their recent kickstarter campaign, BIG has done just that, and has successfully raised funds for developing a steam ring generator at their innovatively designed Copenhagen power plant. This unique feature for the power plant caught the public eye because it is a visual manifestation of how much CO2 the city of Copenhagen is using and is just one example of the many ways architecture can benefit from the support of the broader public.

Another example of a successfully funded kickstarter project was the renovation and remodeling of the historic Jennings Hotel in Joseph, Oregon. This project was undertaken by a small group of design-minded individuals with the desire to convert this historic apartment building into a hotel and artist residence. By offering various incentives to donors, kickstarter campaigns such as this have the potential to draw millions of individuals to support a cause. Do you have a project in mind that could benefit your local community or inspire others? Then you might consider how crowdfunding could bring you closer to achieving your goals.

#2 – Partnering

Partnering is perhaps the most common way for individuals to begin financing development projects, although architects are not always familiar with how to begin the process. If an architect has access to a potential site and has found a suitable program for the land such as a condominium development, he or she might consider partnering with an investor to acquire the private equity needed for the project.

This is important because in order to get financing from a bank, one usually needs approximately 30% in private equity. If the architect does not have the capital to supply half of the required private equity, the investor could provide the total amount and charge his or her partner interest on their share until the project is finished. This particular funding model is known as mezzanine capital financing and tends to offer the potential investor a high interest rate for absorbing much of the risk in a project.

Once a project is complete, the architect or partner who borrowed the money for the project will use their profits to pay the investor back with any additional interest accrued over time. However, an architect may also consider the integrated equity they bring to a project, meaning the fees normally charged for architectural planning. These fees can be offset with the equity one brings to the project and any architectural work put into the project will serve as an investment towards future profits from the completed project.

This method of financing, although common, requires careful planning and appropriate legal arrangements. When beginning a joint venture such as real estate partnering, one should be careful to set up a contractual agreement beforehand that stipulates the terms of the project in detail. Such an agreement makes it clear how all parties will be paid upon completion of the project, but also serves as a plan of action should unforeseen circumstances arise.

#3 – Co-Housing

Co-Housing is a concept that has existed for many years yet is often overlooked as a means for developing projects as an architect. The basic process of co-housing involves designating a location and acquiring multiple buyers who want to build together with an architect and eventually become co-owners of the property. It is a participatory planning and construction process that has achieved widespread popularity in many European cities including Berlin, but is only just beginning to gain momentum in American cities. The practice is particularly beneficial for architects because instead of a capital investment, an architect brings a required set of skills to the development of the project.

The practice has broad potential to create communities of like-minded people such as senior citizens or families interested in sustainable living, but it is in different from a commune because it requires substantial investments from the owners. By financing, designing and building residences as a group, individuals become part owners of a building much like in a co-op apartment building.

However, this method allows architects and investors to take a highly personal role in the project and create uniquely suited residences for their families and neighbors. Residents often design their home environment themselves and benefit from a variety of shared spaces such as a communal kitchen, guest room, and gardens.

Should this particular kind of housing community interest you as an architect, one can find many co-housing groups online who are interested in finding architectural professionals to take a role in the project. If an architect initiates such a project by finding a suitable piece of land, he or she has the benefit of building a portfolio of design experience while passing along the financial risk to the co-housing group.

However, this method of financing also requires a more personal and long term interest in a project that often serves to create a tight-knit community of individuals interested in communal life, environmentally friendly lifestyles or intergenerational living. Additionally, such a project may require a great deal of patience in order to take on the requests of multiple individuals while also playing the role of mediator, architect, and project manager.

Do you have any tips for financing your own project? Tell us in the comment section below!

The post 3 Ways to Finance Your Project without Private Equity appeared first on Archipreneur.