Need Help W/Investor Model
I have an investor that wants to get in on my rehab business. I was thinking of doing something like paying him a straight percentage of his investment lets say 12% payable in 6 months or less and then adding a percentage point per month after 6 months. So for example if he invested $20,000 on a property I would pay him $22,400 when the property is sold within 6 months...and add a point per month beyond 6 months that I have his money.
Does this sound like a good model or does someone have another idea that they are using to reward investors?
Thanks in advance for your help.
...also meant to mention that his money would most likely be used toward a down payment on a conventional mortgage ...