how to structure partnership with developer for 3 houses on my tear-down double lot

[Waverly Rennie]

Hi all- my very first deal, and it's been a roller coaster. Bought a house at auction, turns out to have a mold problem inside and asbestos shingles outside, and pretty crappy construction, but a prime location and double lot. 

Have met with a high-end developer who proposes I bring the land (once I've torn down the house) and he brings the clients and design/GC/development. I would get market value for my land, he'd get his 18% markup on construction costs for the houses, and we'd split any profit over and above that 50/50. He's extremely well regarded in this area and has done some beautiful work. 

I think it's a great option for me to make a little bit of profit off the land and then learn a whole other side of the business (watching him do the development) and maybe make a bit more money depending on how it goes. He's got several clients ready to build in the area if he finds a location for them. He's done a similar mini-neighborhood nearby and it's been a real success. He told me- you find the lots, I will build on them. It all sounds really interesting to me. 

Am I overlooking something here? Would LOVE some opinions and suggestions on how else to look at this.

[Wayne Brooks]

Same thoughts as @J Scott. Assuming you paid cash, he's looking at the two of you putting the land up as the"equity", and financing the construction, which of course will place a mortgage on the land.