Private Money Investment to build spec homes

[Rick Edgeworth]

I'm a home builder and have been approached multiple times from investors wanting to front the money for me to build additional spec homes. My question is what type of terms are these done on? What would be fair from a risk and reward standpoint? From what I've seen a 6-10% return for the investor would be fair. Is this correct? What type of contract would we write up for the deal? I would like to do it but not sure the steps forward. Any feedback/direction/sources would be appreciated. Thanks!