Paperwork For Private Investors
What kind of Agreement is required in writing to offer a return on investment to a private investor? I plan to run an Investors Wanted ad and once I have interested investors what paperwork will they need to sign to secure their investment?
paperwork is deal dependent. What are you planning on offering the investor? A prom. note and putting them on the title as a lien holder is the best way, and if you are just starting to work with someone, probably is the way you shold go. As you grow the relationship, a simple collateral assignment and note is much better for you for business purposes. My advice is think about what you are willing to offer, and consider buying an hour or two of your attorney's time to help you prepare it. Your investor should be impressed and much more comforatble with you when they see you've put some effort and $ into this, and that you are prepared. Best of luck!
Doug
Thanks for your reply and I will use this approach. I am planning to offer 12-15% interest on a note covering the purchase cost of a used mobile home which I plan to flip to an owner occupant for double the price I paid for it.
[addsig]