How to structure a deal between partners and investors (lenders)?

[Paul Tanso]

I have a question that may or may not have a one size fits all answer, but here goes. My partners and I are looking at a deal that will require us to round up investors (people we will take loans from). We are planning to target family and friends. We are not quite sure how to structure the deal, though. Assuming the partners take x% and set aside the remaining x% that will go to our investors to pay interest and principal – what are the typical percentages for each?

Is there a better way of dividing up profits?

I would love to hear people’s experiences, please.