Someone wanted to invest 30k into my landscape company for 5% return, now I’m not the smartest guy out there and someone is free to correct me if I’m wrong but shouldn’t that 5% be until the loan is paid off and not until I give the company up
Again I’m very new to this so I could be looking at this horribly wrong
That would be a $30k loan. He wants to do an equity investment. Meaning he doesn’t expect the $30k to be repaid like a loan, but rather to be paid out 5% dividends of the profits, and also to be able to sell that 5% to another investor, if you guys get aquired or whatever.
A $30k loan would expect regular payments and interest.
Aside from that, there are a plethora of ways to structure deals, and that is for you two to negotiate.