Real Estate Investment Funding

Real Estate Investment Funding

Real estate is a volatile business venture. Real estate investment funding is required by all the start up enterprises in the business to get off the ground. There are certain companies which claim to provide the most suitable real estate investment funding required in the seed stage of the business. However the fact is that such investment companies are interested in arranging the real estate investment funding only for those enterprises which have already flourished very well in some other businesses and now wish to expand their business into the real estate as well. Providing the real estate investment funding for such experienced enterprises bears least investment risks.

It is quiet a task to get the real estate investment funding for those enterprises which have not yet started but have a fool proof business plan. Whether it is the commercial property or residential property business real estate investment funding is a highly profitable venture. The irony is that it is hard to find the suitable real estate investment funding for the start ups.

Angel investors are the best suited for the start up real estate enterprises to get the real estate investment funding in the seed phase as well as later. Angel investors are very flexible in their terms and conditions and also provide a wide variety of real estate investment funding as needed by such enterprises. When the requirement of the enterprises sums to a large real estate investment funding the best option to obtain it so contact the angel investor network or the organizations where a group of angel investors pools their money to provide the large real estate investment funding. The angel investor group can invest millions of pounds for large projects.

Angel investors vs. venture capital investors to get real estate investment funding:

  • The angel investors consider numerous possibilities besides the return on investment before deciding to make real estate investment funding while the venture capital investors only look for the turnover and the return on investment.
  • The angel investors invest their own resources for real estate investment funding, so they take more personal interest in the growth of the enterprise while the venture capital investors uses others money for real estate investment funding so their interest is limited to profits and turnover.
  • The angel investors provide their experience, knowledge, advice and contacts to the invested enterprise while these extra favors are usually lacking fro the venture capital investors.
  • It is due to these reasons that the angel investors are preferred over the venture capital investors to get the real estate investment funding.

Why the angel investors provide real estate investment funding:

  • There could be several reasons behind their motivation for real estate investment funding. It may be as simple as they wanting to continue using their contacts in the field to keep them live. They may provide the real estate investment funding to use their previous experience and get new experience.
  • There are some angel investors which provide real estate investment funding just to help their peers succeed in their venture.
  • Some angel investors are seeking for the active executive role in the invested company while others are not bothered for any such role.
  • There are some angel investors who do not have any experience in real estate business but have money. These angel investors are interested in real estate investment funding to get the experience in the new business field for themselves.
  • Angel investors seek for the 20% returns on investment in the first five years of making the real estate investment funding.
  • Angel investors if get impressed by the business proposal and the interest of the enterprise in taking the business to the zenith, the chances are fair that the angel investors get ready to provide the real estate investment funding.

Real estate investment funding vs. investment in other businesses:

Real estate investment funding is a high risk investment as the real estate business is highly volatile with the market ups and downs each day. The angel investors and even the venture capital investors sometime shy away from the real estate investment funding because of the large investment required and the relative less security in the business. The business may yield huge returns if it hits the right chord at the right time but on the contrary there are fair chances of bearing big loss in this business as the market may fall flat any time due to several reasons behind that it.

The turnover and the return on investment in the real estate investment funding are dependent on surrounding factors as well. The real estate business can not flourish all on its own a number of other factors including the location, the nearby infrastructure play a vital deciding role in the success of the real estate business and the returns on the investment.

Real estate investment funding is a high risk investment but the adventurous investors never shy away from such projects.