Hard Money for Single Family Spec Build - Deal Structure

[Michael Arnold]

I have a potential hard money cash provider to fund the acquisition of land and fund new construction build. I'm a licensed GC and would handle everything project/construction related. Site selection, estimating/detailed budgeting, all labor/material/soft costs are an open book with no markup/GC fee, and i own all site management from groundbreaking to closing.

- Total cost of these projects would range between $390k-$550K. Projects will take 5-7.5 months to complete.

I assume a conservative net profit at closing between 13% and 15%. A home run between 15% and 20% and, if above 20%, a grand slam (as long as the market holds).

Is it fair to assume 50/50 split of net profit at closing? How would you structure this deal? The goal is to try and do 2-3 of these projects/year.