Commercial real estate in south tx.
An opportunity has presented itself to own commercial real estate in south tx. Property apparently appraised at 1.1mil. Partner still owes 550k left. He would like for me to buy in at 400k approx 40% and then pay 40% on the remainder balance (550k). He is asking 10% earnest money (40k)with a 10% penalty were I to pull out. Drawings and engineering have all been done. Plan is to build a plaza and rent out. I work out of state so have not physically seen the property. He has done business with friends of mine and they speak highly of him. Is 10% to much without seeing the property? What stipulations if any should I put into the earnest money?