What is an Angel Investor? An Angel investor as an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Sometimes angel investors will pool their money to give themselves a larger capital pool of funds. From time to time, they are looking to diversify their investments from start up businesses to investing in real estate ventures.
You may want to go and pitch your ideas where angel investors gather. Here are some places where angel investors come and those looking for funding can come and pitch their business plans.
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.
Be sure to have a strong business plan and describe what makes your business idea stand apart:
Angel Capital Association http://www.angelcapitalassociation.org
Angel’s Forum http://www.angelsforum.com
Band of Angels http://www.bandangels.com
Common Angels http://www.commonangels.com
Keiretsu Forum http://www.k4forum.com
Launchpad Venture Group http://www.launchpadventuregroup.com
New World Angels http://www.newworldangels.com
Robin Hood Ventures http://www.robinhoodventures.com (charges $250)
Go Big Network http://www.gobignetwork.com
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.