Investors questions and how to answer

[Jeffrey Smith]

I spoke with a possible investor recently. After offering him 12% of the profit over a year term, he asked, “if you don’t finance to pay me back through a bank loan for whatever reason after that year, would you give me another 12% every year?” I did not know how to answer, so what would be a response for a question like that? This would be a purchase/rehab and hold rental.