Builder Partnership Structure

[Braden Bruce]

Hello BiggerPockets Community. I have an opportunity to purchase a 15 acre tract of land in a great location for a subdivision. I also have a contractor that I know personally and have enjoyed working with in the past. He is young and what I consider to be a rising star. He’s talented and has a loyal crew, just lacks financial backing and knowledge to jump out on his own. I want to structure a partnership with him on the project in some way. I can provide the financing and I want him to provide the construction knowledge and manage the projects. I would be able to finance the project entirely but part of me wants him to be a little more invested than only providing contracting services to keep him motivated and interested/incentivized to complete homes quickly. What would be a good way to structure the responsibilities and profit percentages? Also, how would the land be considered into things? Say we sell a house on a lot that I have 5k in, should percentages be calculated before or after the value of the lot is considered?

Secondarily, how should things be structured legally? Should we form an LLC together? Or could we just run everything through my LLC? Just looking for ideas, obviously will obtain professional legal council before taking any action. Thanks in advance for the advice. Happy investing!