To build a spec or sell the lot for profit

[Greg Virgin]

A partner recently purchased a lot near the central business district. The lot was purchased slightly below market value. I am trying to evaluate whether we should list the lot for sale in hopes of attaining a quick win or if we should evaluate whether or not we should commission a home to be constructed on the lot. 

A couple of key considerations:

-The real estate market is red hot and listings are selling at a premium currently in our market.

-I am a real estate broker but I am not a builder. My key concern is whether I will be able to commission a builder to build a home and still have margin remaining after the builder is compensated. 

-I see an opportunity to partner with a builder and bring them into the deal but I am not sure if a builder would agree to build a spec home so we can all get a return on our investment. 

I appreciate any insight or considerations you may have.