Long Term Private Investor Terms

[Michael Kopyscinski]

Hey All,

I have a family member that wants to invest and "help me out" in my flipping business. However, I am trying to find out what the terms should be?

The money is not in 401K, it's sitting in a bank and she wants to invest. She is getting older and wants to help me get started and also make some money. She is in her 50's right now and wants to use this money to help her retire in 10-15 years.

I am wondering what my options are and what is suggested.

How long is should the term be? What percentage?

Should I offer her a percentage of the profit off each flip? Or whatever is highest, the interest or the profit for the given year?

I'd like to get a feel from other professionals in the community that know more than me and who've been down this road before. What are your thoughts or suggestions? She is a close family member and I want to make sure we both win in this situation.

I appreciate your input and would like to hear your thoughts.

Best,

Mike