Updated 17 days ago on . Most recent reply
Advice on Structuring a Real Estate Partnership Deal
Hi all, I’d like your advice on how to structure a potential deal.
A friend of mine owns a property outright that still has plenty of space for additional development. Since I have construction experience, he’s interested in partnering with me to build more units.
The property originally cost him $600k, and the projected added value is about $2.4M. I estimate total construction costs will be around $1.3M–$1.4M.
His initial idea is for me to cover the construction costs, and then we split the profit once the project is sold.
How would you recommend structuring this deal?
TIA