Re: Just venting - Posted by Kim
Posted by Kim on July 28, 2003 at 24:00:25:
Death by Rehabā¦(NT)
Now, if youāre a Dealmaker ā¦ - Posted by Frank Chin
Posted by Frank Chin on July 29, 2003 at 08:07:37:
Hi RM:
You can tell me āFrank, if thatās your worry, youāll get the 25K before I get anything, BUT, in return, I want to keep everything over 50K, my bonus, - anything wrong with that??ā
In other words āIf the project nets 55K, we split the 50K projected profits at 50/50, and anything above is the bonusā.
Now Iām VERY SURE the project will net at least 50K.
In other words, the active partner putting nothing down assumes the risk āwhen things go wrongā, but reaps the rewards āwhen things go rightā.
Now thatās a WIN/WIN deal, donāt you think.
Frank Chin
Frankās method is called priority return - Posted by JT-IN
Posted by JT-IN on July 28, 2003 at 22:39:44:
To the investorā¦ The investor gets priority of cash return, at x% before the sweat equity partner begins taking returns at all. This approach is rather common in the Investment business, where passive, financial partners fund the deal, and are assured by the hands on partner, by their confidence in the deal, to allow their own profits ride while the passive partner reaps their return firstā¦
You got to get up pretty early in the morning to put one over on Frankā¦
JT-IN
Re: Now, if youāre a Dealmaker ā¦ - Posted by rm
Posted by rm on July 29, 2003 at 08:47:19:
Yeahā¦ I like your style.