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Forum nameFinancial Feast
Topic subjectInvestors and Return
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=105&topic_id=544&mesg_id=544
544, Investors and Return
Posted by rnkownr, Thu Jun-19-08 08:02 AM
I have started a business, I am incorporated as an LLC, Business plan completed. We have a company that will be the owner of the land and the building. We will have another company that will run the facility. Our investors will be investing in the land and the building part of this business. I would like to get some advise on structuring the investment offer. I know we really can't guarentee any of the investment. But we were looking at a 6% return on profit, plus after the investor are paid their 6% what is left from the profits 50% goes back to the investors and 50% back to the company. The only things that I think the investors should be able to vote on are capital improvements and a change of management if certain things aren't met. The second company will have a ten year lease with an option for another ten. I am hoping to have the investors paid off within the ten years. Any advise?