Angel investors do not normally invest in real estate. You can create a table showing all the available assets that can be used as collateral for the investors you are looking for, especially if you are looking for an angel investment for real estate purposes. You can often syndicate your deal when it comes to raising a large amount of capital, and this is especially important for real estate needs. In most cases, venture capital firms do not want to provide capital to real estate companies unless there is an expectation that the real estate will go public through a real estate investment trust. More and more angel investors are investing in hard money mortgages, secured by the purchase of real estate, due to the fact that they are paid an immediate upfront fee for providing equity.
If you are looking for angel investors, you may need a private placement memorandum even if you are looking to buy real estate assets with the income you are looking for. The current economic climate has made borrowing very difficult for people involved in this particular industry. Syndicated investments are very important in the world of small business finance, especially if you are looking to acquire owner-occupied property or a related asset.
Usually only highly experienced entrepreneurs can raise large amounts of capital specifically for the purpose of acquiring income-generating properties. Loans from angel investors are generally not used for real estate purposes, unless it is for a down payment on a specific parcel. On a side note, before submitting any material to a third party, your attorney should review each and every document you submit.
It is important to consult with your CPA when it comes to financing methods, especially for large-scale purposes such as owner-occupied or related real estate. Your certified public accountant will provide you with all necessary documentation related to obtaining a parcel of property, the anticipated value associated with the property, and an applicable loan repayment schedule if required by your angel real estate investor.
Also, you should always have a property appraiser on hand to make sure your angel investor understands the value of the property you are buying, whether it is for owner-occupied use or for income production. This documentation can be used to request both equity and debt capital in connection with your real estate business.