What is fair compensation

3 Replies

I am looking for funding for my small new construction project.  I am budgeting the whole project at about 120K.  I have excellent credit but no money for a deposit.  If I ask friends to invest I me what do you think fair compensation would be?  

@Carroll Lee Shane is suggesting that you split the profits - 70% to you and 30% to them. They would be "invested" in the property. If no money is made (or if money is lost) they participate in that gain or loss. Maybe instead you offer them simple interest which is easier to budget. There is risk - so the reward should be good (better than the "safe" bank would offer). If it is fairly short term then maybe 8-10%?