Equity Lenders

[Craig Curelop]

Hi,

I attended the real estate summit in Oakland, CA this past weekend. Many of the speakers there talked about equity investing and the typical structure seemed to be the following:

-  Investor receives 100% of the profit until investment is made back + 8% return

- Profits thereafter are split 70%/30% Investor/Buyer until investor makes 12% return

- Profits thereafter are split 60%/40% Investor/Buyer until investor makes 16% return

- Profits thereafter are split 50%/50%

Are these structures typically for flips? Correct me if I'm wrong, but for a buy/hold investor, this structure doesn't seem to make sense. It will take forever for the buyer to receive any return? 

Thanks!

Craig