Is this a fair deal?
Hey guys so basically I’ve locked down my first piece of property and it is a home run deal. It’s a new construction project of 8 homes I got at an auction in Saint Paul, Minnesota. An extremely experienced developer friend I have helped me meet with the right people in the city to do my due diligence in getting all the correct information on the property prior to auction. He also will be doing the construction and is helping to get all of the permits from the city in order to build in an extremely speedy manner due to his knowledge experience connections and professionalism. Basically he wants to get paid for construction and is asking for 50% of the leftover profit on the backend. Is this a fair deal? If not what would be common for an arrangement like this. (I feel like if he also handled the loans for the land and new construction this may be a fair deal)