Quote:
Originally Posted by lordfoo
First you have to determine if they will be debt or equity investors.
I'll assume they (and you) intend to be equity investors. In that case, what many (most?) investors look at is a five-year ROI. If this five-year ROI is within a certain window, they are interested. The window is different for each industry, but the investors I have experience with usually want to see [20%, 35%]. (I'm guessing that ridiculously high projections look...ridiculous)
Also, you're not going to find investors willing to put up 100%. They will want to see you put up some capital first.
I know many instances where investors have put up 100% of the funding in bars/restaurants in the South Florida area. I just dont know what their terms were other than the case I mentioned in my OP.
The only reason I started entertaining the thought of outside investors is because they approached me. Like I said in my OP there is many ways to negotiate the deal and one of those could be me putting up some capitol but I am going to pursue 100% funding in the beginning and leave room for negotiating.
I am currently working on the ROI.
Thx