Suggestions to structure an agreement to build a spec house

[Elena Meadows]

Hi there. I'm looking for suggestions for how to fairly structure a deal to potentially build a spec house in a highly desirable area.

Party 1 - Owns the lot free and clear. Worth around $150-$175K

Party 2 - Responsible for design/build, obtaining financing, all permitting and project management.

The finished project will probably be in the $700K range. Other houses in the neighborhood usually sell pre-market or within 2 weeks of listing.