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Building Partner?

565 Views 3 Replies 4 Participants Last post by  mj12
I bought a house next door to me in Nashville. It is a tear down. I would love to tear the house down and just keep the lot, but I can't afford to. I would also like to build a spec house and sell it, but I can't afford that, either. I have spoken to a builder who has built several nice houses in the neighborhood. He wants to do a deal where I pay for all the material and he pays for all labor to build the house. We then split the profits 50-50. Does this seem like an equitable proposition?
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You own the property, you should get a bigger cut.

I don't know.Way to many variables to give a good answer but labor can run 2-3 times the cost of materials
If you decide to go ahead make sure you have a very detailed contract with the builder.
sell the house to the builder for a small profit and count your blessings. Or have him take the cost of materials out of your cut. As opposed to paying up front.

My experience is if you have to ask us you are in over your head. I would not get involved in such a large project if you are unfamiliar with what you are doing.
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