How does a joint development for a property work?


So I am planning entering a joint development agreement with a land owner in India. I will handle the construction costs and he will provide the land. So I figured the share division will be evaluated based on construction cost and land value. But when I was looking for similar deals I found many people offering their property(land) for Joint Development and pushing for a 60-40 share(not sure who owns 60%). So I was wondering if there is a market standard for such kind of deal Where immaterial of construction cost the share is divided on a 6:4(60%-40%) ratio? If not how is the deal evaluated? Since my investment is a liquid asset does it have better value?

Finance Profit Sharing Joint Venture

asked Nov 19 '13 at 21:51
24 points
  • How is "construction" a liquid asset? – Ekoostik Martin 4 years ago
  • I am not the builder. I just put in cash for construction – User899893 4 years ago
  • Well it depends on the value of the land and how much you plan to pay for construction doesn't it? You can't calculate share without knowing this. For example, what if someone owns 1 acre of beachfront land in Malibu, California. This is worth 10`s of millions of dollars. If you go into a development deal with this person a put a $200,000 house on that land, should you get 60% of the equity? – Ekoostik Martin 4 years ago
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Finance Profit Sharing Joint Venture