Need help structuring a deal to investors

[Benjamin Thompson]

Hello! 

I need help structuring a deal to prospective investors because like most just starting out, I need help funding it. What would be a good deal for an investor that gets me what I want as well?  Here are the basics.

Full disclosure: my business partner currently works in the industry we are targeting.

We have an idea to target a specific group of maintenance workers who regularly travel to several different locations around the country for 3-12 months of the year. The maintainers are given a monthly per-diem rate and are required to secure their food and living arrangements from this pay. Typically, the maintainers are staying in hotels where they are spending anywhere from $1,400-1,800 per month on a basic hotel room. Most of the hotels they stay in don’t offer more than a continental breakfast, if anything at all.

After their tour is complete, the company sends a maintainer to replace them forming a constant stream of workers out in the field. Between the two or three contract companies, there are roughly 20-30 maintainers in a given area, depending on work requirements, but rarely are there less than 10. We have already contacted a travel manager for one company to advertise directly to the maintainers. Unfortunately, because of tax structures and current per-diem take home for the maintainers, we cannot make a deal directly with the company, we will have to advertise to the maintainers. That being said, we have already made arrangements to fill all of the bedrooms upon signing.

We want to buy a house with at least 4 bedrooms, preferably 5 or more, and rent each room. We would pay for utilities and amenities (TV/internet) and maintenance costs, such as yard maintenance. We would have to fully furnish the house as well.

We have specifically targeted an area my business partner is currently operating in. I have been talking with a real estate agent about this deal, in brief at least. There are a few minor things to work out. My business partner will be the property management for the time he is located in the area, roughly 6-12 months, from there we need to secure a property manager, grounds keeper; we need to draw up contracts and run it by lawyers in the area; and we need to specifically decide on payment methods. I’m sure there are other things I’m forgetting at the moment.

We have some cash on hand and a soft offer from an investor, though it won’t be enough to purchase the house, it will cover furniture, lawyers, inspections, and other initial setup costs.