joint ventures

I like to find property owners who want to make an additonal profit by taking a little risk with me as a builder. I found an owner of a nice lot in Draper, UT and presented him with an opportunity to participate in a spec house on his property for 50% of the profit. His land was paid for free and clear and I said he would need to put the property up and suboardinate it to a construction loan to build a house on his property for resale. I offered him a fair market price for his property plus 50% of the profit from the sale of the house. He agreed and I obtained a construction loan for the cost of the building. Since the property was paid for and became part of the partnership, the bank had no problem making the loan. I built the house and received a general contractor's fee for doing so, then I marketed the property and listing it on the MLS since I am a broker and received a commission for doing so. When the property sold for the estimated projected amount, the property owner and I split the remaining profit after I paid him the agreed upon amount for his property and I received my contractor's fee and commission. We made after all costs $77,000 profit on the project which split two ways was $38,500 a piece. The house sold for $525,000. Along with a contractor's fee of $45,000 and a commission of $15,000, this project brought in $98,500 with no money down by me. (That is a great return on investment). Of course, it was fulltime work for nearly a year to build and sell the house, but I was able to build two other homes during the same period of time on different terms.