How to structure deals with passive investors

[Steven Bader]

I'm trying to figure out the best way to structure a deal that I have on the table. I have passive investors willing to invest but am not sure how to structure the best deal for everyone. What I've come up with so far is the following:

7% preferred return to investor (is this typically considered profitable interest or a reduction in loaned principal?)

Anything over the 7% will be paid to me as the managing member

Then a forced sale on an agreed upon timeframe? typically 5, 7, or 10 years? Typically, I see 50/50 splits but what if I have money invested in the project or there are multiple partners?

Should I include a finders fee? Management fee if I decide to not use an outside company?