Investor pay-back structure
Hi everybody :) ..... I currently own a 15 unit building and am currently seeking more properties. Since I didn't use any outside investors on my first one, I'm looking for some feedback on the next purchases. I have some partner-investors lined up who are willing to put some money in the pot to make the next purchase(s) happen, but without utilizing this before, I'd like some pointers. How are you who have used investor money, structuring your paybacks to the investors? I.E. if the property to purchase is $1m, down payment is $200k, and I have 3 investors putting in $50k each totaling $150k, and I use $50k of my own money, what are some optimal ways to setup the payback of the $150k outside money back to each investor, in the best/quickest way so we can roll into more properties at the fastest rate or deploy the money elsewhere, quicker? (Assume all outside money is just that, money, and these outside investors won't have any active roles in operating/managing any of the properties.) Any and all feedback is much appreciated. Thanks ;)