Advice on Developer Builder Partnership Deal

[Randall Solomon]

Hi all,

I'm a new developer doing a second home vacation planned community in a rural state far from the metro area where I live. I live in the place where the people will be buying houses and I have connections to the networks to sell them. I'm considering a partnership with a builder from the state were the community will be. Here are the terms of the proposed deal:

What I put in/get:

- I put in 150k cash
- I put in the original idea and there are some legitimately unique elements to the community. 
- I put in countless hours as the developer working on the concept for a long time I found the site, did a lot of research to identify a unique target market. 
- I'll be doing everything that needs to be done that my partner doesn't do, including marketing the units, ets., raising additional needed capital from pre-sales and investors, dealing with accountant, etc. 
- I GET 70% of the company and profits

What the builder puts in/gets:

- 10k cash, mostly for good faith
- The LLC/Partnership will rent his construction company for the duration of the project. The LLC/Partnership will pay for all of the expenses. Materials, subs, labor, overhead. And the LLC/partnership will pay him each quarter of the project the profit his company made the previous year. Essentially, we will rent his whole company, and pay it's expenses and an agreed profit based on what they actually made the previous year.
- The construction company will hold some paper to order some houses and get the project going and get paid from home sales. And the guaranteed profit (based on previous years earnings) would be debt owed him by the LLC only to be paid at the end of the project if successful. 
- He will serve as the general contractor and project manager for all of the earth work, roads, infrastructure (he has to get subs for it) etc. And he gets NO MARKUP on any of those contracts. So if he drives down cost, he drives up profits that he recovers with his 30% equity stake. 
- He will build the homes, including working with the architect and civil engineer to value engineer some unique concept homes with a factory. He will get NO MARKUP on home construction or anything else. He works to drive down the price because that benefits the LLC and he earns profits on the back end. 
- In addition he has been doing a lot of the work that a traditional developer would do. He has been checking out sites and reaching out to contractors and helping to scope the project. He is local, I'm not, so he will be doing the first outreach to the Mayor and planning board in the target site. 

I hope I explained that adequately. I like the partnership because we bring very different skills to the table. 

So, what do people think? Is this a reasonable partnership? I've done a lot of contracts in my life, but this one feels very apples to oranges so it's hard for me to get a read on it.