Real Estate Development

[Prakash Menon]

Hi

Working on a three-way partnership to develop a property. Details below

1. 1. Investor
   1. Me putting in 50% of the required amount for the project to happen. Targeting a 100% CoC ROI.
   2. The property would be on my lien.
   3. Profit Participation - 75% of net profits
2. 2. Hard Money Lender
   1. Putting in the remaining Mezzanine Construction Loan money (Like a syndicate).
   2. Getting the required permits for demo an existing home.
3. 3. Builder / GC - Building the spec project.
   1. $15k/door labor – site labor costs
   2. GC Fee = 7% of hard costs – overhead/profit for GC managing the build
   3. Upside Profit Participation - 25% of net profits
   4. Demo the existing home. Build 3 Spec cottage homes.

Thoughts on this structure and any existing legal construction template I can use?

Thanks

Kash