Updated 11 months ago on . Most recent reply
Development partnership questions
There are 30 acres that I own and I'm looking to potentially partner with a developer who's done it before. I had a short conversation with a prominent developer today and will be meeting with them next week. In our short conversation he said they could structure it as I bring the land, they bring in cash equal to the value of the land, then we take out a development loan, they take on a majority of the work, and we split the profits 50/50.
Does this sound like a fair offer in the development world? What could I be missing? Would it be expected that the developer pay off the remaining underlying loan that I owe on? If not, would the developer and I split the costs on the remaining mortgage? What should I be asking when we meet next week?