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Old 11-08-2013, 08:21 AM
 
18,949 posts, read 57,804,576 times
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I wouldn't accept,
A:for the simple reason that 50% gives equal voting rights on what is done to someone who is sitting back and not involved in day-to-day operation.
B:within a month or two the friendship will be in the past tense.
C: the terms show a lack of business acumen

Percentage of ownership can vary depending on the risks involved and amount of money involved. For a real investor $50K is probably less than a twentieth of what they have as money available for investing. While every penny is important, it is still chump change. This sounds more like "I'll borrow from my retirement" type of lending.
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Old 11-08-2013, 09:48 AM
 
Location: Pearland
799 posts, read 2,184,745 times
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There is no where near enough information included here to judge.

This is all emotional conjecture. The truth is somewhere between its a great deal for the investor to potato.
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Old 11-09-2013, 11:03 AM
 
1,196 posts, read 1,633,786 times
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What kind of business are we talking about here? What do they need the cash for?

I have a rule: Never mix family and friends with business,and never take money from them.

He wants to be paid a set amount each month, which would increase if the business became more profitable; he also wants 50% of the proceeds if the business is ever sold. I don't know what would happen if the business failed before his $50k was paid back in these monthly "dividends". He calls himself a "limited partner".

He wants to be paid from the start? If that's true, he is nothing but a shark, and has no clue about cash flow that is critical to any new business venture. How is sucking out much needed cash flow going to help?
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