Question

12 Replies

Someone give me some info on this deal.

I am offering an investor 60% equity in a project and I receive 40%. The investor gets 60% of the profits for 15-20 years. So what is going on with no one taking this deal?

Not enough information. Is the ROI unrealistic? Maybe the 15-20 years is not appealing.

@Ricky White Like @Brian Tremaine said, there's not really enough info. And also, if you are trying to put together a deal where you're bringing in investors, 60% is probably a bit low of an equity stake for them. Typically, the investors should be getting an equity stake of 75%-80%. 

Also, your exit strategy, whether selling the property or refinancing and paying off your investors should be no more than about 7 years, with 5 years being more appealing to most.

Hope that helps some.

terrible way to start a thread.  you should get a do over.  thread title and question. 

Originally posted by @Brooks Rembert :

@Ricky White Like @Brian Tremaine said, there's not really enough info. And also, if you are trying to put together a deal where you're bringing in investors, 60% is probably a bit low of an equity stake for them. Typically, the investors should be getting an equity stake of 75%-80%. 

Also, your exit strategy, whether selling the property or refinancing and paying off your investors should be no more than about 7 years, with 5 years being more appealing to most.

Hope that helps some.

 The project is a franchise motel. That has a gross income of $700,000 and is for sale but the owner not a broker he is asking $2,100,000 and that is with the property it sits on He said it appraises for more than he is asking. The owner wants to retire.

That does help me a lot guys thanks if I have any questions can I ask you guys

Ask the seller if he'll finance it to you.  Might be easier than finding a partner.

It all depends on the deal. If you have the deal of the century, you could keep 80% of it without putting any money in, but that is obviously extremely uncommon. Does this deal have a lot of equity in it? What's the expected return for the investor? The percentage split just doesn't tell enough about the deal to evaluate it.

Originally posted by @George P. :

terrible way to start a thread.  you should get a do over.  thread title and question. 

 Why is this a terrible why to start a thread

Originally posted by @Brooks Rembert :

@Ricky White Like @Brian Tremaine said, there's not really enough info. And also, if you are trying to put together a deal where you're bringing in investors, 60% is probably a bit low of an equity stake for them. Typically, the investors should be getting an equity stake of 75%-80%. 

Also, your exit strategy, whether selling the property or refinancing and paying off your investors should be no more than about 7 years, with 5 years being more appealing to most.

Hope that helps some.

 Which would be a better investment for someone wanting to buy investment properties? Rentals such as multi-family or motel/hotel properties.

Originally posted by @Ricky White :
Originally posted by @George P.:

terrible way to start a thread.  you should get a do over.  thread title and question. 

 Why is this a terrible why to start a thread

 because you didn't bother adding any details in the title and most people won't bother even opening it. so you lost a large audience because the title just said "question". 

makes sense? 

Originally posted by @George P. :
Originally posted by @Ricky White:
Originally posted by @George P.:

terrible way to start a thread.  you should get a do over.  thread title and question. 

 Why is this a terrible why to start a thread

 because you didn't bother adding any details in the title and most people won't bother even opening it. so you lost a large audience because the title just said "question". 

makes sense? 

 Yea but if I had put to much in there bp would have kicked it out

Originally posted by @George P. :
Originally posted by @Ricky White:
Originally posted by @George P.:

terrible way to start a thread.  you should get a do over.  thread title and question. 

 Why is this a terrible why to start a thread

 because you didn't bother adding any details in the title and most people won't bother even opening it. so you lost a large audience because the title just said "question". 

makes sense? 

 Yea but if I had put to much in there bp would have kicked it out

This post has been removed.

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