The Pros and Cons of Angel Vs. Real Estate Investing
With Percy Nikora, Co-Founder
Angel investing is where you would invest a certain amount and an early stage company. And hopefully that company does as well. You have a couple follow on investments. And ultimately that company is going to get acquired by a larger company or they'll have an IPO. In fact, one of our companies having an IPO this week. But there there's some big differences between doing that sort of early stage angel investing and investing in real estate. The biggest one is the risk that comes along in angel investing.
Out of the 100 investments, about 80 or 90 percent of them are not going to work up. And so you're right, you're making similar investments in a six figure investments in each company that could be wiped out completely and only a very small number of them would have a significant return. So the the economics of that are based on one or two successes and about, you know, 80 to 90 failures. Sometimes that works. Then that sort of ratio works out. Sometimes it does not.
So that's one of the primary reasons I've been moving more and more of my network into real estate because to me, it's a little more stable. It's a little more predictive. And the tax benefits that you get with With real estate investing, I'm there for for angel investing. So for all of those reasons, it made more sense to me to sort of slowly start to move my network into into real estate. So today it was a lot of my network is in real estate because that's the asset class that I think is is better suited to preserve wealth as well as grow up.
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Scaling a Private Real Estate Portfolio with Partners With Percy Nikora, Co-Founder Primarily, when I first started, around 2000-2001, it…Watch here >>