A question regarding capital contributions

[Jay Rogers]

My team and I are just getting our flipping business started (1st house in rehab stage now) and an investor has offered us $30k for 25% of future profits (after this house).

In our price range, 30k would cover about half of a down payment and closing costs, so we’d still have to borrow more for a down payment and closing costs. The rehab can be funded through a relationship with a portfolio lender.

I feel like 25% of profits is a lot for that size investment. Should we accept but for a lower profit share? Or maybe he gets the best of say 10% of profits or 10% of his investment. I’ve done promissory notes with private lenders but never negotiated what is essentially part ownership. Any advice would be greatly appreciated.