Angel investing – that is, funding startups or other businesses with your own money – is high risk, high reward. Sometimes it takes multiple failed investments before hitting the jackpot. In comparison, real estate investing is usually safer because you are rarely the lone investor. Plus, a busted real estate venture still leaves property behind, which has some value. Real estate investing is also more liquid than angel investing (though less liquid than stocks). Furthermore, real estate offers greater tax benefits, such as the possibility of deferring capital gains. All told, real estate is the safer and better option compared to angel investing.
- Angel investing and real estate investing are two very different ways to increase net worth.
- Angel investing can result in high reward but is much higher risk than investing in real estate.
- Real estate investing tends to result in higher tax breaks which can increase the total value of these investments.
“Angel investors are generally high net worth individuals who use their own money to invest in startups or other types of businesses.”