We own land. Should we partner with builder?

[Brian Christensen]

My parents own about .8 acre on Main Street in our town expensive/expanding town. Hot market. Homes gone in a day with cash offers. They have an old building there and we were considering tear down and building townhomes. I contacted a builder who is building townhomes across the street. We will meet with him today. My parents own th property outright. They want to partner with the builder, where they have the property and the builder brings the construction. What terms will the builder be amenable to and how can we profit from a deal like this? Would it be just as profitable to sell their building/land and not build? I understand that their are unaccounted for variables. Thanks for your expertise. 
Brian

[Jay Hinrichs]

U want your parents to talk to their CPA FIRST.. if they go the development route they are now ( depending on the amount of units) creating inventory.. which will be taxed at ordinary income rates ( very HIGH)

if they just sell they can 1031  and move on to something else.. many times when you run the math consider the risks of a partnership.. the sale of the land is far better than thinking your going to make some profit..  Bird in the hand