Investor / Home builder agreement and terms
I’m a new single family home builder with a few opportunities to take on some investors to increase my production volume. The largest of these investors wants to pay the full cost of building lots, which we’d then use for getting construction loans, and split the profits when the homes sell.
My question is this: what kind of agreement / profit share can I expect from an arrangement where the investor is paying 100% for the building lots?
Splitting net profit 50/50 wouldn’t make sense to me since the investor would putting up all the money for the lots, although they would be “silent” leaving me to do 100% of the building process from start to finish. Just unsure of how to cut the pie in this kind of arrangement...
Thank you for any and all information!