How to set up a joint venture property development

Joint venture property development are becoming increasingly popular as those who are looking to off load potential residential developments sites are finding it increasingly challenging to achieve their desired asking prices.
So land owners are looking to set up joint ventures with those that have the knowledge experience and track record of delivering past projects. The advantage of a joint venture is that you have a builder on board who is looking to save costs and push the project to completion to gain their share of the developer?s profit. The industry standard for this type of venture is often a 50 / 50 profit share with the land owner putting up the land as security and the developer or main contractor doing the construction or build phase of the project at cost. This helps with the project borrowing and banks are always keen to see an experienced developer or main contractor on the team. The days when banks were happy to fund first time developers are long behind us, and with the property developer funders having a choice of various deals to back, land and site owners are pleased to do a joint venture rather than see their site sold below market value.