this guy is asking you to invest in him on the promise of something that may not eventuate
therefore, you should ask for a copy of
* BMI member number
* signed contract from the distributor relating to the deal agreed to
in return, you should then generate a contract that stipulates payments to be received as a percentage of royalties, with several clauses stipulating default payments to be made at regular intervals if sales do not follow projections
that is, the contract you agree to should include a mechanism to ensure that you receive money to cover the overheads related to recording (rent, electricity, water, gas, loan interest, salaries of staff, etc) on a quarterly basis as well as allowing for such payments to be recovered from future royalties due to you, if sales pick up
in other words protect yourself as best you can
in drawing up the contract ensure that you get input from a lawyer of your \choosing to ensure that you do not have any weasel words inserted in the regular payments clauses