Private Lending Ownership Structuring

[James Johnson]

Hi all,

My business partner and I have friends which want to invest with us. We have an idea on how we would structure the ownership on a BRRRR (our idea of the structuring below), but were hoping for advise on how others have structured any private lending ownership. All feedback is welcome!

Our plan for structuring:

• Investor(s) - 25% down payment with 10% emergency fund initially. Investors would be included on LLC as signers.

• As monthly cash flow begins, Chris and I would immediately begin pay back the 10% emergency fund to the investors.

• 15% monthly profit after Opex goes to investors for a steady stream of monthly cash.

Overall ownership structure would follow:

• 35% equity and 15% monthly post-tax CF to investor(s) to give a 66% return if value remains constant.

• 65% equity and 85% monthly post-tax CF (to include emergency fund percentage, etc) to Matt and Chris

Thanks!

Chris