How much do you give your Investors?

[George Paiva]

I am looking to expand past 2,3,4 multi's and into 12+ multi's. In my past deals I basically just gave any equity investor profit equal to the capital they put in for the overall project. For example if they put in $25k on a $100k project they would only get 25% of the revenue after all expenses of course.

Now that I want to get into bigger projects, do any of you give a little more in percentage of revenue? Or should I stick to $1 per equity 1% and not give any extra basis points.

I ask because I have a partner insistant that if we get into bigger projects we may have to give 80 to 90% of revenue for equity partners. I personally think he is off his rocker because we will also be equity partners and most likely be on the note up to 70% LTV.

As for debt partners, I already understand they get a set % back on their investment for a given period. No question there if we need to add a few basis points, aka HML.