Updated over 5 years ago on . Most recent reply
How To Structure This Investment Partnership
Two investors are buying a warehouse. One investor is investing 1.3M cash and the other got approved to put in the remaining 1.3m through a hard money lender. The loan is secured by a first trust deed against the property. The term is 12 mos with a balloon payment at the end of the 12 months. The broker who found the loan swears she can find another loan with better terms during those 12 months to avoid the balloon payment.
How do you structure this so it’s fair to investor #1 who put it in their own cash?