Hi every one I am brand new, just signed up to bigger pockets today. I have a unique opportunity with a piece of property I obtained in the booming Uptown Charlotte 3rd ward neighborhood. I purchased the small house here on a 1/4 acre lot for $172k. I rolled some money from another property over so currently I have no mortgage but a lien of $66k. I have gone through the process of splitting the lot in to a flag lot, 2 parcels, and have just finalized architectural plans to build a duplex on each lot, 4 units total. Each unit is about 2,040 square feet, 3BR/3.5BA, 2 car garage, rooftop patio. I'm hoping I can team up with a builder that can keep our cost down around $100/sq.ft., which would make building cost about $816,000. Additional costs, land prep, demo house, permits, etc. puts us in at about $900,000. These are selling like hot cakes, very low supply and the other new similar townhouses that have hit the market are off within a week or two. The list price for these units will be $450k/each, total of $1.8M.
Less some realtor fees this gives us a profit around $850k. I have put in about $150k of my own money to get us to the point we're at now. I am now bidding out the project to builders who would fund the project and build it in exchange for a % of the profits or sale price, an equity partner. What is a fair amount to split this up either on the sale price or as a percentage of profits? A couple have said they would split the profits with me. Has any one done a similar deal or if you could point me in the right direction that'd be great!
Wow, sounds like a decent deal. How's this coming along?
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