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75
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31
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Greg C.
  • Real Estate Investor
  • Lake Balboa, CA
31
Votes |
75
Posts

Start Up Restaurant Investing and partnership percent structures

Greg C.
  • Real Estate Investor
  • Lake Balboa, CA
Posted

Sorry this is more of a general business investing question then Real Estate so I wasn't sure where to post... 2 questions in regard to investing in a Restaurant Business.

1) Silent Partner share structure.  If you are investing start up capital into a new restaurant and you are fronting 50% of the start up capital shared with the Owner / Operator.  What type of partnership share would you expect considering this is passive with no control. IE  for simple numbers.  If projected start up is $100,000 and as an investor you put in $50,000.  What would you expect as a share of the business.

2) Un related to the above question.  Different scenario.  If you raise capital through investors for a third party to start a restaurant (establish fine dinning looking for capital to open a new location).  What would a reasonable fee for the that capital raise be?

Appreciate any input.