The cutoff date varies, but Generation Z is loosely defined as those born between the late 1990s through the 2010s. That means that while the youngest members of Generation Z are still in diapers, the oldest members will be stepping into a voting booth this year for the first time. They’re filling out college applications and they’re taking summer jobs and internships.

Most importantly for marketers, they’re spending money. Even though most of their cohort hasn’t entered the workforce yet, their buying power already stands at an estimated $44 billion – and soon they’re going to be spending a lot more than just allowance money.

Avoid Bundling Generation Z With Millennials: They’re Not The Same          

The temptation to link Generation Z with Millennials for marketing purposes is clear. Both generations are tech-savvy multi-taskers, and both want the brands they support to promote their own values of sustainability and social justice. But in spite of their similarities, the two generations grew up in very different worlds, which will shape their purchasing decisions for years to come.

Coming of age during the Great Recession and its aftereffects, Generation Z has deeply rooted economic insecurities. They’ve seen older siblings struggle to achieve an independent adulthood, they’ve seen parents laid off, and they’ve seen savings vanish. Even pop culture reflects the general anxieties surrounding the future; think about recent blockbuster hits like The Hunger Games, featuring dystopian societies with untrustworthy leaders. Generation Z is realistically cautious about depending on anybody other than themselves. The result is that they want to take responsibility for gathering information rather than passively receiving advice.

Additionally, Generation Z’s constant connectedness surpasses the level of their Millennial predecessors, who grew up in a world of dialup internet, slow connections, and patience. The overwhelming amount of information available at their fingertips has given Generation Z an understandably short attention span combined with a high expectation for immediate service. Though the differences are small, they’re crucial enough that they deserve a marketing plan of their own.

Help Give Them an Active Role in Making Purchasing Decisions

 As the oldest members of Generation Z start going to go to college, their decisions about higher education provide important hints for marketers about how their worldview will shape their purchasing decisions. All signs point to the idea that Generation Z places strong weight on their independence and uniqueness, causing them to look down on mass-market solutions.

Their desire to be independent is perhaps best reflected in a 2014 survey of 16-to-19-year-olds conducted by Northeastern University where 42% of respondents said they expected to be self-employed at some point in their career. This is significantly higher than the actual 6.6% of Americans who were actually self-employed at the time, according to the Bureau of Labor Statistics. The same study cited 72% of respondents agreeing that colleges should allow their students to create and customize their own course of study or major.

This entrepreneurial, creative drive is in line not only with Generation Z’s pessimistic view of conventional job opportunities, but also with an independent streak and a desire to exercise a high amount of control over their day-to-day lives.

Companies hoping to woo Generation Z can capitalize on these notions by developing ways for customers to interact with their brand’s products, not just purchase ready-made, off-the-shelf items. The more customers can personalize, customize, and engage with every aspect of their buying experience, the better they will feel about making a purchase suited specifically to them from a company that cares about their preferences.

 Bring Them Information on Their Own Terms

 Generation Z is enraptured with technology just like their millennial counterparts, but they’re much more concerned about privacy. This is demonstrated by their preferences for social media platforms like Snapchat, whose messages automatically disappear after a pre-determined time limit, or YikYak, where users in the same area can chat anonymously.

In an age where being in the social media spotlight is something to avoid and information is held close, unsolicited advertisements are perceived by Generation Z to be something of an invasion of privacy. Unsolicited e-mails and pop-ups are to Generation Z what unsolicited telemarketing calls in the middle of family dinner were to Generation X.

Instead, the best way to get off on the right foot with Generation Z is to make sure that they are the ones who come to you. Start with understanding online search strategies. When individuals look for options for a product that they want to buy – or, in the case of real estate, a property – how can you make sure that they’ll find you? The answer lies in the increasingly common arena of search engine optimization (“SEO”), a term describing strategic methods for companies to understand customers‘ search patterns and position their company to end up at the top of the results.

Marketing as Diplomacy: Take Customers The Last Three Feet to the Finish Line

 Just because Generation Z is skeptical of traditional marketing tactics doesn’t mean companies should take a completely hands-off approach. One way to strike a balance is to take an approach common in American diplomacy: the idea of “the last three feet,” credited to Edward Murrow. The theory reflects the idea that relationships can be created from a distance to a large degree, but a highly personalized, highly targeted approach is necessary to bring those relationships across the proverbial finish line: the last three feet. That’s where diplomats come in, living abroad and investing time building trust and loyalty through strong personal relationships with influential counterparts.

In a similar manner, marketers can and should build brand loyalty from a distance, but must keep in mind upper limits and devote a fair amount of resources to those last personal touches.  In this environment, the opportunity to directly connect to the customer is more valuable than ever, and should be encouraged by allowing as many different and unconventional options to connect as possible: phone, e-mail, text message, chat, Facebook message and FaceTime. An open, honest relationship where representatives have the freedom to express individuality to avoid coming off as phony will be key to walking customers from “maybe” to “yes.”

A Lot Can Still Change – Be Flexible and Keep an Ear to the Ground

While the first patterns of Generation Z’s purchasing decisions are already emerging and indicative, that doesn’t mean that their habits are set in stone. The backdrop of their lives – from politics to the economy to social issues – will continue to affect how Generation Z thinks, acts, and buys. Still, waiting too long to move on a strategy is a mistake. The best way to address the growing purchasing power shifting to Generation Z is to have a plan, but – just like the members of Generation Z – stay flexible.

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As crowdfunding evolves, though, this hot, emerging funding method is no longer just an entertainment sideshow, but a legitimate way for entrepreneurs to publicly solicit funding for their projects or ideas. While donation amounts tend to be smaller than traditional investments, the base of investors tends to be much larger. At its heart, crowdfunding captures the collective wisdom of curious, engaged, and active investors looking to fund projects that are highly likely to succeed but need an injection of capital to get off the ground.

The benefits are many. Crowdfunding helps entrepreneurs give life to worthy project proposals that would otherwise have difficulty connecting to capital markets. In addition, crowdfunding is increasingly considered a financially sound investment strategy.  The investments can be a useful tool for creating a more diverse portfolio, encompassing sectors and trends that may be underrepresented or even absent from an otherwise balanced set of holdings.

Another reason for investors to love crowdfunding is that according to recent studies, the wisdom of the crowd is more than just a myth. Ethan Mollick, a professor at the University of Pennsylvania‘s Wharton School, finds in his research that “entrepreneurial quality is assessed in similar ways by both Venture Capitalists and crowdfunders, but that crowdfunding alleviates some of the geographic and gender biases associated with the way that Venture Capitalists look for signals of quality.”

In this way, pooling together collective wisdom to select investments serves as its own built-in screening method, singling out the most promising and successful opportunities for investment.

In a study by bankrate.com on investment preferences, the wisdom of the crowd also weighed in on its preferred long-term investment vehicle: real estate. According to the 2015 study, 27% of Americans cited real estate as their preferred option for long-term investment, the highest of any asset class. For comparison, only 17% said they preferred to invest in the stock market when eyeing long-term returns.

Capitalizing on these positive sentiments toward real estate and utilizing the potential of crowdfunding to reach investors worldwide, companies like RealCrowd have developed easy-to-use platforms for investors seeking exposure to commercial real estate projects through crowdfunding. The site, which is free for investors, features a variety of direct investment opportunities allowing users to purchase “shares” in multifamily residential, retail, office, industrial, and development real estate projects.

Accredited investors can use RealCrowd’s platform to access a wide array of detailed documentation about the properties, including long-term business plans, target returns and cash flow projections. They can also access expected costs for capital improvements and maintenance, giving complete transparency on expected life-cycle income and expenses. The in-depth information allows investors to make informed decisions about which opportunities make the most sense for their individual investment profiles.

For investors, real estate crowdfunding platforms like RealCrowd offer several clear advantages over other popular options for portfolio exposure to real estate, such as Real Estate Investment Trusts (REITs).

One of the most tangible benefits comes in the form of lower fees for investors. The crowdfunding platform is able to offer its services for free to investors by charging listing fees to the property managers or owners. This is in stark contrast to non-traded REITs managed by funds which can claim between 12 and 15 percent of investments in front-end fees, according to the Wall Street Journal. Benefits of crowdfunding over REITs can be found on the back-end, too, as all REITs are only legally required to distribute 90% of rental profits to shareholders, significantly tipping the scales in favor of direct ownership.

For the developers using crowdfunding platforms, the fees are well worth the expanded access to a large number of potential investors, as well as the simplicity of connecting virtually. Previously, raising private capital was a difficult and time-intensive endeavor with large, on-the-ground pushes to solicit funds from a limited pool of contacts. Crowdfunding platforms, which eliminate those costs, are subsequently well-placed to pass on some of those savings to investors.

Another benefit of crowdfunding over REITs comes in terms of exposure. Just as some investors prefer to put their money in individual stocks instead of mutual funds, would-be real estate investors may prefer to put their money in single, tangible assets that they can select singularly based on the investor’s own market outlook. While REITs encompass a large number of listings that can provide diversification within the real estate market, a knowledgeable investor may prefer to utilize his market knowledge in the hopes of better returns in stronger investment climates. Crowdfunding platforms allow investors to stick to their own desired parameters, such as a specific region or a specific type of property.

Why not go through a more traditional model of finding and investing in properties? The answer for most investors is simple: access. Traditionally, access to high-profile investments has been limited to investors that already have inside contacts and that are willing to put up large sums. Crowdfunding lowers those barriers to entry by making the connections between sponsor and investor, and also lowers the minimum buy-in requirements. RealCrowd, for example, allows investors to invest as little as $5,000 in its properties.

Although there are a growing number of real estate crowdfunding platforms offering investment services, RealCrowd stands out for its larger, high-profile commercial investment opportunities. Also noteworthy are the company’s well-connected founders; CEO Adam Hooper, CMO Roman Rosario, and the rest of the RealCrowd team boast over 30 years of combined experience in the industry, including $5 billion of combined transactional experience. The team’s industry links have earned the platform a number of prominent listings.

One such listing is Oxbow Public Market, a spirited artisanal marketplace and gathering place in Napa Valley’s wine country launched by Madison Marquette. In a recent press release, the real estate investment firm’s President Eric Hohmann described his excitement at opening up the property known as “Napa’s public square” to investors: “This rare and innovative opportunity for the region means a virtually unlimited pool of potential investors now have the chance to enjoy and own a slice of Napa’s luxury wine country lifestyle,” Hohmann said.

Oxbow, a popular destination for tourists and locals alike, has been nationally recognized as one of the leading public markets in the country. With active social programming and an ideal location along the Napa River, the 23,000-square-foot multi-vendor marketplace is poised to maintain its position as a leading location for upscale shopping and dining. Madison Marquette’s decision to open the prestigious location for investment on RealCrowd is both a boon to the site and a vote of confidence for crowdfunding in general.

Real estate has long been a road to wealth creation. Real estate crowdfunding, a niche but growing market, is making that road more accessible and more direct.

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