Land Interests....3's a crowd

General Real Estate Investing
1

Wanted to get some advice from the more experienced and newbies alike. This is something I’ve been thinking about for quite some time

There are multiple pieces of land that my family owns outside of the U.S. As much of the land was handed down from parents to the children as many can imagine there are multiple interests in the land.

Here is the situation. There is a plot of land in a commercial area which my family personally wants to develop. There are two other parties which are involved with this however (and one of the problem is that they don’t have resources to develop the land).
We have asked if they would consider selling of their interest in the land but they say they wouldnt like to and on the other hand they don’t have the financial capabilities of contributing.

What would you all suggest for options?

My family has the resources to make improvements and develop the land (including obtaining financing). How should we work out dividing of profits once buildlings constructed etc. What could you suggest to make this all work. Remember the other parties don’t have financing but my family would like to proceed ahead.

How would you proceed financially now and in the future concerning this project?

THanks!

2

Anyone have any ideas or ever been involved in any situations like this? How did you resolve it? ;D

3

I think it boils down to the laws of the country the property is located in. In the US, you could bring a partition lawsuit to force the sale of the property or perhaps consolidation of interest, but from what I understand these things can be quite difficult.

4

Everything is negotiable. If you are bringing almost everything to the table, but they are bringing equity in the property to the table, then work out an equation that everyone is happy with and go. Just make sure that you are in control of all decisions and that they understand that. I have been involved with a developer where we basically bought the land and he developed it. We provided the equity in the land and he provided the knowhow and the work, and we split profits in a way that we were both comfortable with. Just figure out who is bringing what and what peice of the pie that value should equate too.

Good Luck,

DB

5

d_sbrown what was the percentage that you were granted for having the land and what was the percentage the developer got?

Thanks