Join Date: Aug 2008
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I like toast's deal. Personally I wouldn't give any equity away at all up front. That's hard to unwind. For example, if the guy turned out to be a total flake within the first few months - and you've given him 25% equity, you know have to buy that equity back from the flake who only made one fee payment.
It makes more sense to me to have that 50% number defined for both parties (I'd actually recommend 49/51, etc. in your favor), then put whatever money the guy tosses into the kitty against that amount. They get into a nice boat cheaply, and you get some relief.
The biggest hurdle will be the definition of "taking care of the upkeep". This can leave a lot up for interpretation. So you should really spell that out clearly.
Do you have any lawyer buddies?