Development partnership
Let’s Do This Together.
How It Works
When partnering with a landowner, our goal is to create a structure where everyone benefits fairly. We begin by identifying the current value of the property as it sits. This becomes the landowner’s minimum basis in the project.
Next, we determine the costs required to develop the property. This includes entitlement work, engineering and architectural services, surveying and testing, and all necessary infrastructure improvements. The total of these items becomes our minimum basis.
As the project moves forward and lots or finished units are sold, the landowner is paid out first until their minimum basis is fully covered. We are then paid out next until our development basis is covered.
Once both sides have recovered their initial contributions, the remaining profits are shared. This structure ensures that the landowner benefits from the increased value created through development, while we are compensated for the capital, time, and effort invested. It is a true partnership where both sides win, and the return reflects the value each contributes.
FAQs
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No, we do not take out a loan to develop a property. We use our private money.
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We can’t tell the future but we can be smart! One example of this is that we always “Phase” into our projects which allows us to only have a small portion of lots/units to sell at a time. Then as that “Phase” sells, we can move on to the next.
That way if the market tanks, a builder bails, or if WW3 breaks out. We have mitigated our risk enough to not get into a bad spot. This makes projects safer for both parties.
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You get paid as each lot/unit sells. We like to structure this way so you don’t have to wait until the entire project is finished.
This can be helpful in financial planning and tax burdens, as well as having cash significantly sooner to be able to do with as you please.