Looking for personal investor(s)

[Six house]

I am looking for a personal investor(s) to invest in a year round haunted house and 18 hole black light mini golf course in Springfield, MO. I have been a manager for a haunted house for many years and ran all aspects of the business. I will offer 10% net for each investor, for up to 5 investors, 4 investors 12.0%, 3 investors 17%, 2 investors 25%, and 49% for one investor. I'm looking for $600K for start up. The estimated gross income is 725K with a net of 335K for the first 7 years and 435K after that. There is only one haunted house in Springfield, Mo and very little mini golf courses. I have all the plans for both attractions and story lines. I also have a building in mind with over 60K cars drive by it each day. I also planed to repay 100K per year for loans from investors. I have more detailed information available for serious investors.

[EBITDA]

What do you mean "10% net per investor..."? Is that 10% ROI? Are you issuing debt or equity? If you are issuing debt, is it secured or unsecured; will it be in a first or second position; and what is the collateral?

Sub debt returns for established companies start at high teens, and go up from there. Equtiy returns are 1.5x sub-debt returns.

As this is a local deal, you should be talking to local investors. Talk to your accountant and attorney - they should have a network of local high net worth investors.

Also, make sure you are in compliance with state and federal securities laws. Under the Securities Act of 1933, any offer to sell securities must either be registered with the SEC or meet an exemption. Regulation D (or Reg D) contains three rules providing exemptions from the registration requirements. Reg D are for the benefit of small companies seeking to raise capital from accredited investors.

There are also state laws to consider. Since you are seeking an investor you are by default issuing securities.

A Private Placement Memorandum, or PPM, is a way to communicate what your company is about and a summary of terms for the security you are offering. By using a PPM you are providing prospective investors/partners with a consistent communication of your offering, thus providing yourself with cover from potential securities fraud claims.

The other benefits from having a PPM is 1) you intentionally think through what you are looking for; and 2) you present a professional face to your fund raising efforts.

An attorney may charge you $15,000 to $20,000 or more (I spent $18,000 on my last PPM), but, and this is self serving, you can get a template and write you own for $247 from TransCapital Pro. Ping me if you have any other questions.

All the best,
Nick
www.TransCapitalPro.com