Smart or Dumb: Offering a Bonus or Equity on a Deal I Don’t Need Funding For

[Chris Howell]

Considering bringing in an investor group on a small, low-risk rehab — not because I need the capital, but to test the model and build a working relationship for future, larger deals.

Would you do it just to:

• Set expectations early
• Prove performance with outside capital
• Build trust before scaling?

Deal Snapshot (Investor Gets One of Two Options)

• Need: $40K for full rehab (roof, siding, HVAC, windows, paint, flooring)
• Option A: 6.5% preferred return, paid monthly + 10% bonus at Month 25
• Option B: 6.5% preferred return, paid monthly + 10% equity (cash flow & upside)
• Passive, non-voting, capital returned by Month 25

Just curious to hear thoughts from you guys!