Structuring a real estate deal
Curious what you guys think the profit structure should be given the following scenario: an owner of the property is approached by a builder with a proposal to rebuild the house. The market value of the property is 1MM and it needs a 500k investment in order to sell it for 2MM. The owner of the property provides his property and the builder provides everything that is associated with rebuilding the property(time, resources, financing etc). What would be a profit share structure in this case that makes sense? Leave tax and other factors aside as I'm curious to see the acceptable % of the share for each individual is in this case.