project

3 Replies

Does this sound like a good deal for an investor and the person he is helping find his project?

Investor fully funds project and investor recieves 50% equity in business for 5 years

The partner has 50% ownership. 

Please advise.

Could you elaborate a little bit more on the scope of the project?  Is it a flip, flip and rent, or just a buy and hold? The 50% equity for only 5 years seems a little odd. 

I've been involved (did some project management for my father's business) where we had an investor who fully funded a couple of house flips.  My father's business did 100% of the work (coordination of contractors, accounting, etc.) but it was funded 100% by the investor.  When the house sold, they split the profits 50/50.  

Those particular deals worked out great.  Mostly because you have someone with a pile of cash and little knowledge who partners with someone who has expertise in the field and can get the work done.  

it is a buy and hold as in income property motel residual income flow.

Originally posted by @James Triano :

Could you elaborate a little bit more on the scope of the project?  Is it a flip, flip and rent, or just a buy and hold? The 50% equity for only 5 years seems a little odd. 

I've been involved (did some project management for my father's business) where we had an investor who fully funded a couple of house flips.  My father's business did 100% of the work (coordination of contractors, accounting, etc.) but it was funded 100% by the investor.  When the house sold, they split the profits 50/50.  

Those particular deals worked out great.  Mostly because you have someone with a pile of cash and little knowledge who partners with someone who has expertise in the field and can get the work done.  

 This project is buying motels