Raw Land Development Help

[Brian Giles]

BP Family, 

I need advice for setting up correct contract for a real estate deal between 3-4 people equally? 

Background: We are purchasing raw land soon, want to develop 15 quadplexes over the next 3-7 yrs. Our due diligence is in the works. It is zoned for multi-properties. My partner and myself have already formed an LLC on other deals we have. Can we or should we do a Joint Venture or Syndication attached to our LLC or should we start a fresh deal between the 4 of us? If so, what type of terms would you recommend for such a long process? We are not developers, we are going to find and hire them. So they will not be part of the initial set up. Unless we decide to negotiate equity later. I understand this is new territory for us with raw land and developing, any guidance can help. As of now I'am just looking for basic information and best way to go.

Thank you BP Fam.

[Pat L.]

Up here we had an investor pre-plan a sub-division & once surveyed & roads etc were laid the city/town re-assessed every lot for our NYS criminally insane property taxes. So his carrying costs became an expensive  millstone as sales were slow & each build was only partially financed on the sales made. Be prepared, talk to the assessor because it was a gut wrenching unplanned surprise that created a lot of stress. I see some big builders here will only develop a small section/phase, no roads nothing, until the first phase completely sells out.