Posted by JT-IN on August 04, 2005 at 21:01:32:
You slighted yourself and the value of your time and expertise on the negotiations here… Assuming that you negotiated a deal that is worth 25K in equity, under FMV… times 10 units… What is that total worth…? It looks to me like it is worth 250K under FMV… You took 33K… Plus whatever you are getting on the financing… but I didn’t follow that “gave a 1.25% prem for guarantor of loan” ???
Your compensation should have been in the range of 7 to 10% since you are taking it on the backend… maybe less if you are taking it in cash… So you should have gotten a 10% stake in the deal, with nothing out of pocket on your part… and they investors should be feelin pretty good about that, IMO.
That means that the investor would have gotten into the deal for about 90% of FMV, maybe less, even after your fee as an equity share… Not too hateful…
Just the way that I evaluate it…