Usual terms when investing in a project?

[Ronald Hayden]

We’re just getting started in real estate, and we have an opportunity to invest in projects being done by an experienced pro. This is an exciting possibility as it could allow us to get a return and be involved in bigger projects than we could do on our own, while learning the ropes. 

Is there a good resource (podcast/book) for being a pure investor and how such deals are typically structured? 

In this case the idea is that we’d get a percentage of the profits when the property is sold. For this situation, is the usual expectation that the person receiving the investment guarantees paying back the investment itself no matter what happens, or would the money we invested be at risk if, say, the property sold below costs?

Before getting far into this discussion we just want to get our heads around expectations and risks...