Possible Investor Deal Scenarios - NEED HELP
New to the forum. Just starting out. Did my first small development on my nown. it was a success.
Now I am ready to jump in. I just need to know what kind of deal to cut with my investors/friends. you can probably understand that i want to make sure that it is a really stand-up deal. i can imagine pure equity deals & combinations of debt and equity (even structured) deals. although i am begining to think that debt is just too complicated.
If it helps, the investors are willing to contribute $300K and we will be engaging in a series of refurbishments and conversions. the legal structures are in place. So my question centers on the financial splits and deals.
Any help?
check out the various state and federal securities laws you may be violated.
The rules are pretty brutal they 1st time you see them, but there are some reasonable exemptions.
The biggest risk is personal liability. punative damages, have to refund the investors original $$.
you might flip those numbers around 60-40 to investor-developer
I pay my investors no more than 30%. I own all properties and all liability is to my company. Just use their money to come up. US was bld on OPM and/or OPC ( Other People Money and Credit)
My buyer is paying all cash. Since after the closing the title will be in my name, would a seperate agreement to quitclaim the condo over to him suffice. I am looking for the most simple way
to handle this.