Securing financing is perhaps the most divisive aspect of real estate investing. On the one hand, it’s the first major obstacle most investors will run into when starting out. On the other hand, it’s not as difficult to secure funding as most inexperienced real estate investors make it out to be. In fact, there’s a large contingent of lenders that are simply waiting for the right opportunity to come along, and there’s no reason your next deal couldn’t be exactly what they were looking for.
Angel investors are ready and willing to put money into a startup that they deem worthy; the only trick is convincing them that you are worthy of their capital. If you play your cards right, there’s absolutely no reason your next deal couldn’t be funded by an angel investor.
Aptly dubbed, angel investors earned their title by investing in the dreams of aspiring entrepreneurs. Or, as most are quick to point out, angel investors invest in small startups or entrepreneurs that are less than established. That’s not to say angel investors can’t invest in anyone they please, but it’s more common for an angel investor to offer their support in the form of “a one-time investment to help the business propel or an ongoing injection of money to support and carry the company through its difficult early stages,” according to Investopedia. That’s an important distinction to make: angel investors are more involved in the initial stage of a company. Unlike venture capital that is typically intended to build up a company from its original foundation, angel investors help companies build the foundation itself.
Angel investors can be anyone with the intentions of helping a business get its feet off the ground; they are often well connected, wealthy individuals who believe in a product. In addition to using their own money, angel investors aren’t confined by the same restraints that come with venture capital: “they don’t go on boards, they don’t need to put in lots of capital (in fact, they usually don’t want to), they prefer dead simple terms (as they often don’t have legal support), they understand the experimental nature of the idea, and they can sometimes decide in a single meeting whether or not to invest,” according to Business Insider.
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Green angel investing is exactly what you would think it is: an opportunity for angel investors to fund something “green” that has potential to grow into something bigger. In other words, green angel investors are more inclined to fund projects that are environmentally friendly. Therefore, it’s only natural that investors interested in “greenhabbing” a property place a priority on finding and securing funds from a green angel investor. Their natural inclination towards green projects will certainly benefit those investors who intend to incorporate sustainable, energy efficient practices in future deals.
Whether you are looking for angel investors or angel investing companies, it’s a good idea to establish some criteria. Prior to even looking at an angel investing website, try to build some semblance of an idea of what you are looking for. Only those investors that know what they want out of an angel investor will find what they need; it’s as simple as that. And if you are more or less unfamiliar with what to look for, the following list should be a good place to start:
Often overlooked, and perhaps even underestimated, angel investors are not given they attention they deserve. As it turns out, angel investing is a viable alternative to traditional financing, and even private money lenders. What is angel investing, if not for a possibility to fund your next deal? At the very least, it needs to be carefully considered. More importantly, however, you’ll never know until you investigate further.