creative financing / deal making for townhome

[Chet Mazur]

I am working on a small Townhomes / subdivision development and we're trying to come up with creative financing strategies. In order to make our bid stand out from other bidders for the property we are thinking of offering a joint venture of some sort to the seller of the land. Something like the sell gets a flat purchase price and then X percent of each unit sold or profit of each unit sold. Does anyone have any experience with this that they'd like to share?

The property is ~1 ac and can be split in 6-13 lots depending on a number of factors.

e.g. They are asking 1.8 for the property, and we offer 1.6+ 100K per unit, so a total on 2.2M, if 6 are build and a home run for seller if 13are built.

What do people think?