Many of us have dealt with some horrible ones. Sounds great in the beginning, time goes by and attitude changes. When money is involved of course. Let me get some opinions from some on here on what is fair, in this situation. By the way, not about weed at all, this just happens to be the busiest forum I've seen( and Facebook is for the birds ). The investor starts the business, has the cash flow. If not for him, there'd be none. The other partner provides the property( lol again, not weed, get your minds out of the gutter). If not for that, there'd be no investment to begin with. Both do equal work . Just in different areas. Now, would you say this investor should get all of his money back even if the business is split 50/50, or should that be split as well since the other partner provided the property? Opinions have varied. I know it depends on what was agreed upon in the beginning, but let's say there wasn't one at the time. What do you think? And by the way, it's a small gym, I know the whole time reading this that is all you were thinking about
if it's 50/50... it's 50/50. get me? if it's not... shoulda explicitly laid that out before venturing.
Well it was agreed that money would be paid back at beginning..soon as profit began. but I chose to leave that out because the responses would be too obvious. I just wanted to see opinions ignoring that scenario which has an obvious answer
I own a couple business now and have multiple business partners. Way of the game is the investor gets his money back in full + some (that some being interest or however you contractually work it out) I just closed a store so now the investors debt in that store (because I'm the nicest person ever and this guy should be kissing my ass for years to come) was transferred to my other more flourishing store. Investment money is something you ALWAYS pay back in full unless specified in the beginning. ALWAYS. Why would they make an investment otherwise?
Thanks Royal, that's basically what I was looking for. This person thinks the work they put in to get it up and running, should now all of a sudden cancel out half of what I invested. But of course, the tone was the complete opposite the months leading up to it...asking often to get that investment. Usually how it goes tho
Another REALLY insanely large reason to pay the investor back in full as quick as possible.. Cause I may have another project down the road i need someone to invest in and the only way to get non bank loans is to be well known to succeed and pay back your debts.
Samtaylor tip, don't go 50 50, and get everything in writing. Are you just an investor, or do you make business decisions? I'd make the other person buy me out, if this is your income source as a businessman. But just as investor, you should get back your investment plus some
I make business decisions as well...not just investor. I was just the one that was able to get it all started. Profits down the road will be 50/50. Agreement at time was i get all that money back. Because i was hesitant to even do it. And i usually would get everything in writing, unfortunately trusted this person when they said " im a man of my word, no need for a contract". And yes, that was a mistake. I just wanted to see others experiences, but for sure i am getting it all back..not settling for any less than that.
Well is the property split between the two or does the other party who put down the property still own all of it ?