Types Of Investors: Which Will You Be?

Today’s most prolific investors are savvy, business-minded individuals that have found the path of least resistance to financial freedom. There are several types of investors, not the least of which have demonstrated a propensity for their own success. Let’s take a look at the many types of investors there are today, and which option may be best for you.


There are several different types of investors, each of which have taken to their own particular style and industry. That said, there are literally countless ways an individual or business may invest their money. From venture capitalists to private lenders, investors come in all shapes and sizes. While they are all different, each of them have one thing in common: they make investments to increase their financial status.

Let’s take a look at the most common types of investors you are likely to come across:

  • Banks: Traditional and institutionalized banks are perhaps the most well-known investors in today’s borrowing-centric economy. Most notably, banks take on a considerable amount of risk to invest in prospective homeowners. With the risk, however, comes the benefit of interest. In lending money to homebuyers, banks stand to make a generous return on their investment, as interest rates are now somewhere in the neighborhood of 4.5% (depending on the duration and terms).
  • Angel Investors: High net worth individuals who consider themselves angel investors typically invest in aspiring entrepreneurs. That said, angel investors tend to lend capital to those who have already generated some momentum of their own. They are in just about every industry imaginable, and tend to focus their efforts on entrepreneurs who are no longer in need of seed money but still aren’t quite ready for venture capital.
  • Venture Capitalists: Venture capitalist investors are usually reserved for businesses and entrepreneurs that have already demonstrated a propensity for success and wealth building. These investors usually invest significant amounts of money (upwards of tens-of-millions of dollars) and are usually only interested in working on larger projects.
  • Personal Investors: Otherwise known as private money lenders, personal investors can be anyone with a pension for investing and the funds to do so. Private money lenders will usually loan funds to real estate investors in return for interest rates as high as 12% to 15%.
  • Real Estate Investors: Real estate investors, as their names suggest, purchase real estate assets with the intent of making a profit, either through short-term or long-term investments. Common exit strategies include wholesaling, buying and holding and rehabbing.
  • Stock Market Investors: Stock market investors will buy and sell stocks on the major market indices around the world. In buying stocks, investors are buying into a portion of each company’s stock they purchase. Stocks are typically reserved for long-term investors, but their volatility can work in favor of short-term investors, too. “Over nearly the last century, the stock market’s average return is about 10% annually,” according to NerdWallet
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Disclaimer: The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no ...

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