Lior Poly on Angel Investors for Real Estate

As a Real Estate Angel Investor, Lior Poly says that he only invests in companies that need financing for moderate down payments that will generate a substantial return on investment.

Returns come from the capital appreciation of a property and the positive income generated from the rent roll. Here are a few tips that Lior Poly gives tips to real estate companies who are looking for Angel Investors for their projects:

  1. It would be best if you were qualified to manage the property on a day to day basis. Lior Poly says that one of the critical things that would motivate him to invest in a property is a qualified and dedicated entrepreneur.
  2. If the property your company wants to acquire requires a substantial amount of work, you should consider a private funding source that will help you achieve the parcel of land then resell it immediately when the job is done.
  3. Any business documentation that you produce should showcase that real estate acquisition and sale will generate a return of 20% to 30% annually on investment on a compounded basis. Lior Poly says that if you can guarantee these figures, angel Investors will flock to your company as these numbers are what most angel investors are primarily interested in.
  4. Strong background in general contracting. Suppose you are seeking angel investors for real estate. In that case, Lior Poly says that you need to have had a lot of prior experience in general contracting or interiors contracting so that value can be immediately recognized on completion of your work intended for the property that you would like to purchase. Additionally, only the most qualified general contractors can effectively raise funds for real estate projects.
  5. For companies that are not looking to sell a substantial amount of equity in the property project they are working on, Lior advises that they seek out hard money loans or bridge loans based on their loan to equity ratios. Lior explains that despite it being an expensive form of financing, it is more profitable to use a costly form of funding than equity capital to complete a viable real estate transaction.
  6. Develop a highly focused loan amortization schedule. For companies seeking debt capital financing for their real estate projects, Lior says that developing this schedule will allow them to understand the underlying costs associated with any debt obligation they undertake short term.
  7. Hire a qualified, certified public accountant. Lior advises that they hire someone who is certified to assist them in financial advisory matters for those who have limited knowledge about real estate finance.

The current real estate market allows various opportunities for individuals with the money needed to invest in tangible property investments. As such, your real estate business will need to provide 60% of the project’s total value to any investor that provides the necessary capital that will finance and complete the transaction. Lior Poly is a prominent real estate angel investor who provides insights on how you can limit your risk and equity exposure.

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