Ground up development partnering with land owner

1 Reply

Hey guys!

I have an opportunity to partner with a land owner on a development. I'm curious as to what the proper way to structure this type of deal is. Who gets what equity, who pays for what, etc. 

Appreciate the insight! 

I have been part of some transactions like this with my father. In his case the owner would start out with the equity, but as more value was built by my father's work part of that equity would transfer to him. He typically wanted the end result to be 50/50 once the project was complete. This would obviously depend on the value starting out, how the work will be separated out, and the estimated end value. I would also suggest working with a good real estate attorney to sort through the details. 

Good Luck! Aaron