Land & New Construction
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago,
New residential construction partnership structure - How to split
Hello,
I own a lot in an existing neighborhood which homes currently sell for 350k. I am currently a builder myself and was approached by another builder in the neighborhood who is currently building a home down to street to buy my lot and/or partner on my lot to build a home together. I am in with the lot at 40k and he offered me 60k (which I do not want to do). How could we make this deal a win/win for the both of us? I am trying not to use my liquid capital to fund the deal. Could we orchestrate something like he put's up all the money to build it and gets a higher percentage or what do you guys think? To add to this equation, the profit on such home would be about 75-100k.
Thank you in advance.
I own a lot in an existing neighborhood which homes currently sell for 350k. I am currently a builder myself and was approached by another builder in the neighborhood who is currently building a home down to street to buy my lot and/or partner on my lot to build a home together. I am in with the lot at 40k and he offered me 60k (which I do not want to do). How could we make this deal a win/win for the both of us? I am trying not to use my liquid capital to fund the deal. Could we orchestrate something like he put's up all the money to build it and gets a higher percentage or what do you guys think? To add to this equation, the profit on such home would be about 75-100k.
Thank you in advance.