The owner Wants To Partner in a new development
I have been working this lead for six months, and we are finally ready to move forward. I have a vague idea of how to structure this but have never done anything like this. I’ve been wholesaling sfr now I’m staring at a partnership to develop 3 acres. Not sure who to turn to or what to do since the owner will only commit on principle to give me 120 days due diligence and to secure financing. Should I present this to an investor/developer or walk away since all I have is a handshake?
Most Popular Reply
Busy developers do not want owners of land as partners. They do it as a last resort if an (A) location.
They also do not have time to train a wholesaler and learn the process. They usually might pay a small fee for finding the deal or give a small percentage slice of equity but no more than that.
It's like back in the day when I had a car audio business. If you want me to install 4 speakers and a radio it was 125 bucks decades ago. If you want to so call HELP and ask all these questions that will be 200.
120 days goes by fast. Upfront due diligence can costs tens of thousands of dollars or more. Are you ready to spend that out of your pocket? If it is raw land with a house on it or just trees it still has to get entitled. There are tons of layers to developing.
120 days just does not sound realistic.
- Joel Owens
- Podcast Guest on Show #47
