All Forum Posts by: Ven Bodavula

So to be clear you have the purchase contract and once upon closing he would complete the paper and horizontal improvements and then you would sell the shovel ready lots.

Who is providing the financial backing?

I am buying the land with a loan. Friends are -art nets in the development phase , no loans their

0 Votes

Saint Louis, Missouri

Quote from @Chris Seveney:

@Ven Bodavula

Why not pay him by the hour as a consulting fee. Something like this would be $100-$200/hr.

That way the scope of work can be further defined and it is fair for everyone based on what needs to be done.

Chris

It’s tough tracking hours , it creates lot of micro managing and doubt in a relationship . I am want incentives to be aligned . He saves money and makes more profits - he also benefits by the work .
what would you suggest a fair percentage

0 Votes

Saint Louis, Missouri

Hello everyone

Need advice on what is a reasonable compensation to provide to a developer helping me

Project is 2.5 acres of residential land - was developed for commercial office buildings , recently rezoned to residential with all utilities laid out .
I have the land under contract , working with a developer who develops , residential lots .

He is kind of slowing down and father of one of my colleagues and willing to help and get involved with 30-35 years of experience doing this .

Land with development cost will be be around 800-900k, which I and my partners will contribute and projected expected return is around 50% .

What percentage of profits is reasonable fee for him to be the developer , doing everything from permitting to lots ready to build

0 Votes

Saint Louis, Missouri

All Forum Posts by: Ven Bodavula

Ven Bodavula has started 1 posts and replied 3 times.

Post: Development fees for small residential project

Post: Development fees for small residential project

Post: Development fees for small residential project