Buy land for friend to build on. If selling later how to split profit?

[Joshua Ocean]

Hey guys i have a general question,

if im buying land for my friend to build a house on and we decide to sell it later...how should the profits be split? He will finance building the house. 

[Elias Halvorson]

I have never understood this. I do not know how close your friendship is, but I would advise you to exercise extreme caution. Why are you buying so he can build on? Is he not able to buy land himself? I would have everything outlined ahead of time in a written contract. Both of you should understand the deal and you should hash out every little detail. Like, will he be living there and you just owning the land? How much is he paying you monthly to use your land? Lots of questions you need to get sorted out.