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Updated about 4 years ago on . Most recent reply

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61
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10
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Bennett Schwartz
10
Votes |
61
Posts

Structuring deals: Equity in deal vs Percentage back

Bennett Schwartz
Posted

Hi BP,

I'm working on starting a RE company in the Philly area and have some people who are interested in investing. A big question I have is whether I should structure the deals in a way that the capital investor gets a percentage of the deal or a return on their investment. I'm sure this is more of an art than a science and some investors would prefer one over the other but i'm trying to figure out how to pitch the deals. 

My goals is to own the property in the long run, so i'm siding towards a return on investment so I can have full control in the future when I can Refi and return their investment. 

Just wondering what others have done and any insight is appreciated. 

"Stand guard at the door of your mind" -Jim Rohn

Most Popular Reply

User Stats

263
Posts
122
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Cody Lewis
  • Investor
  • Charleston, SC
122
Votes |
263
Posts
Cody Lewis
  • Investor
  • Charleston, SC
Replied

Sounds like the result you want should dictate return on the investment. I would go with that if your ultimate goal is to retain ownership and have the largest equity share.

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