What is the best method of partnering with a land owner?

Question

I am starting a residential construction business. Due to lack of personal capital I want to partner with a local land owner. What is the best method to find landowners interested in doing so?

Answer 1

I am a mortgage broker from alberta, canada and I have just spent the last three months working on a deal that is similar to what you are going to do. You could ask the land owner to be an equity partner whereby the land owner supplies the land but gains an interest in the project so that he will be paid out of the profits at the end. The project I was working on the land owner was asked to supply the land and he would be paid $6,000,000 after two years when the raw land was at the construction stage. The original asking price for the land was $3,000,000.

One of the real popular choices up here is ,say you are looking to buy 160 acres of land. You would look for investors who would buy 1 acre interests, and they would have an undivided interest in the land which would be registered on title. One project here the land developer bought 160 acres from the farmer at $8,000 per acre. Sells a UDI to investors for $20,000 an acre plus $40,000 to service the land. they are then given a guarantee that they will be sold to construction companies for $145,000 per acre. they can sell their interest to anyone at any time as they are registered on title. This may not work where you are living as we have a superheated economy with not enough serviced lands for people to build homes. If you want more information you can contact me @ http://www.albertamortgageguy.com