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Thread: land development joint venture

  1. #1
    Member
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    land development joint venture

    was wondering if any one has ever done this, we have a 16 acres 34 lot approved subdivision in a very nice prominent area. The people who were going to buy it went through zoning got it approved but financing fell through. We are looking for someone to do a joint venture, we provide the land they provide the cash and we split the profits....only thing is how would that go? 50 50 or 60 50, as land owners what % should we look for?

  2. #2
    Cyburbian Jess's avatar
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    Here's a suggestion:
    Total sales: $$$
    -less overhead:$$$
    -less development costs:$$$
    -other expenses:$$$ (permits, taxes, transfer costs, professioanl fees, etc)
    Net sales= $$$$
    From net sales you share 50-50. Would that be fair?

  3. #3
    Unfrozen Caveman Planner mendelman's avatar
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    50/50 is generally fair, but you own the land and there are many developers out there with the experience. You hold the most important part of the development equation - the land. In any land development, the land is usually a large portion of the cost and the most intergal, so I would say go more like 60/40 (at least - owner/developer)
    I'm sorry. Is my bias showing?

    The ends can justify the means.

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