Structuring new build partnership

[KC Frank]

Hi there experts. Hoping to get guidance and info on a new partnership. 

I am going to be the financing arm of a new build and sell business. My partner will be general contracting at no cost, although he will be paying a few key 1099’s and contractors . We plan to split profits at the end (I am charging interest). 

Thoughts? Strategies? Pitfalls? All comments and guidance are welcome. 

Thanks!

[Robert Ellis]

Quote from @KC Frank:

Hi there experts. Hoping to get guidance and info on a new partnership. 

I am going to be the financing arm of a new build and sell business. My partner will be general contracting at no cost, although he will be paying a few key 1099’s and contractors . We plan to split profits at the end (I am charging interest). 

Thoughts? Strategies? Pitfalls? All comments and guidance are welcome. 

Thanks!

 I can send you my construction agreements. he shouldn't build for nothing and you shouldn't fund the whole deal. there's got to be some equality. I'd recommend a minimum fee like 10% and you charge interest and points that are equivalent to market conditions, you also get the first guaranteed 20% profit as the only capital partner. make sure to take title in a single purpose entity and dissolve it after you build. I'd be happy to look at the construction numbers. partnerships are tough, it's better to be transactional with both people happy with initial terms and not counting on a sale. we do partnerships like this in COLUMBUS OHIO and miami florida and I'd be happy to help advise. how much experience does the GC have with new builds?