Are you looking for angel investors for California real estate?

Angel investors are wealthy individuals that invest their own money into companies at various stages, though usually the lion’s share of their investment is made in the early stages.  There are angel investors funding companies in almost every industry, and California real estate is no exception.

Where can I find an angel investor?

Since you are reading this article on the internet, you can begin your quest for funding by surfing the ‘net for local angel investment groups.  Most angels want to be close to their investments to make it easier to visit the company in person if necessary and so communication can remain unhindered.  With markets frequently changing in California real estate, this communication is vital to making wise investment decisions.

What expectations does an angel investing in California real estate have?

There are a number of expectations you need to discuss with your potential angel.  First, you should find their motivation.  Especially in real estate, many may simply be lacking the time necessary to find deals.  You must know how much the angel wants to be involved and what value you are bringing to the investor.  You must be able to show him clearly why his money is best in your hands despite the risks.

Real estate seems intuitive to many people, and therefore they will want to understand in more detail exactly how you plan to generate returns for them.  Remember throughout the process that raising money, especially large amounts, takes time.

Commercial California real estate investing

If you want to invest in commercial real estate, you will in all likelihood need more money, and on a recurring basis.  Review the amount you are seeking, and if it cannot be decreased to under $1 million, you are probably best looking for venture capital.  This becomes difficult since fewer venture capital firms invest in real estate.  However, searching the internet for firms in your area that do so may yield some results. 

You can also visit www.Invstor.com to find capital.  The Invstor.com Network connects entrepreneurs, investors, advisors, job seekers, and anyone else in the startup community.  When you purchase a subscription, you are able to view the contact information for all members of The Invstor.com Network.  You can search by preferred investment amount, industry, and investor type to find angels that would be good fits to your company and begin contacting them about your business.

Alternatively, if you prefer to make searching for funding easier, you can post a “Request” to the network.  A Request is a small advertisement similar to a classified ad that is sent to targeted investors.  When investors begin contacting you, the drama and excitement of building your own startup can begin!

Final word of caution

Most angel investors require very high returns to offset the high risks they assume.  If you are planning a business that will bring you a large amount of income personally but will not generate millions of dollars in revenue or grow extremely quickly, then you may have trouble attracting investors.  They may want to see 30% returns on their money per annum.