Real Estate Agent · Gandeeville, WV · Member since 2017 · 40 posts · 17 votes
A bigfish investor has approached our project with a deal that seems too good to be true. What risks are involved in granting the investor too much equity in the end product? Could there be an ulterior motive involved?
San Diego, CA · Member since 2017 · 78 posts · 42 votes
8y
I am sure the bigfish investor got where he is today by smart investing. You never want to give away equity, but if it's the only option on the table and you are desperate for capital, you may wish to bite the bullet and plant the seeds of a new professional relationship by trading equity.
Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
8y
There is all types of ways to control things when setting up deals. You need to provide more contex on what terms are you agreeing on, just equity, same number of voting rights, etc?
Investor · New York, NY · Member since 2017 · 111 posts · 49 votes
8y
Agreed, what other details can you supply on the situation? Do you have the seed capital to get the project accomplished yourself anyway, or are you desperate for the investment?
Bellevue, ID · Member since 2017 · 116 posts · 33 votes
8y
I would try, if possible, to avoid giving away equity at all costs. Worse case scenario, and speaking in generalities only, you could eventually get pushed out of your own investment, losing seed capital and all.
San Diego, CA · Member since 2017 · 78 posts · 42 votes
8y
I am sure the bigfish investor got where he is today by smart investing. You never want to give away equity, but if it's the only option on the table and you are desperate for capital, you may wish to bite the bullet and plant the seeds of a new professional relationship by trading equity.
Bellevue, ID · Member since 2017 · 116 posts · 33 votes
8y
@Account Closed I am certainly willing to change my earlier answer after reading your post. I agree with your thoughts on this, the experience that a high level investor brings to the table can certainly be worth the difference.
Suva, Fiji · Member since 2017 · 52 posts · 23 votes
8y
I am currently gearing up for my first investment, and am using the services of a mentor I met in my local community. Seeing the level of value he brings to the table, I would certainly be willing to give away equity in exchange for expertise.