How would you structure a deal?

[James Sills]

If you had a private money lender, how would you structure a deal with them so you both win? Also, would you choose SFH or multifamily?

[Michael Quarles]

I’ve always believed that if the lender is a “partner” sharing exposure and not an at cost money provider dividing the profit of the deal into three sections is appropriate   

Money

Marketing

Management 

This said it’s not unreasonable to allow a minimum return after “X” profit.  Keep in mind money is important however so are marketing and management.