Need suggestions for a proper contract/joint venture agreement

[Adam Soyak]

I am working on forming a possible partnership with someone who owns multiple lots (lots are SFH up to 16-unit apartments). I have the construction contacts and access to funds for the ground up construction (1 building at a time). The owner of the lots is very interested in learning the construction side of the business and I am willing to teach him the ropes.

The lots on average are $35k. The construction cost is $165k for a SFH, and the ARV is 240k. Real estate commission will be reduced due to my wife being a realtor.

I am trying to figure out a fair deal for the owner of the lots whether it be a flat % return, a partnership split, or another type of agreement. Looking for suggestions on how to work up this agreement whether it be 1 lot at a time or multiple lots for future buildouts.

Thank you for your suggestions ahead of time!