This is my first deal and I have a 70% loan from a credit union. I buddy wants to invest the other 30%. How do I structure the repayment or compensation but keep him off the title but make him a good deal?
Ric
well since your friend trusts you enough to just give you money to play with I would just write up a promissory note for the amount.
If you have never written or used a promissory note beofre be sure to look around for examples. Some of the things you will want to include in the note are:
Are there going to be any payments?
Any interest rate?
When does he get paid? When you sell? and how much at that time?
Describe everything out that you can so there is no miscommunication about Who, What, When, Where and How things are going to happen. Be sure to include any What Ifs.