The main benefit is you don't have to deal with bank underwriting/approval and typically need less than 20% down.

In commercial an offer is not typically used. 

Property values in the area are high...so are construction costs. 

He wants to take my lot with what I guess is an option, along with getting a construction loan to build on.

A typical sand and refinish in my market is going to run 600-1500. 

@Darvin Ezell depends on the amount...but wire typically works...title can hold it in escrow and distribute funds accordingly when you close...maybe call the title company and ask their system...what they prefer. 

If no, I would recommend using your local Board approved contract from the local association of realtors...these are typically legalese, but offer the most protection.

Find out what they typically look for in a property and go hunting!

I've been in the real estate and construction industries for a collective 15 years.

If that property is fairly rural and is not as desirable as a typical place "for sale" location, it might be better to rent it and plan on holding on to it for a while.