Have an opportunity to partner with someone and buy some land, build on it, and sell it. He has done this numerous times, but I would be completely new to this. This is something that interests me and could be a good side hustle and maybe even full time job down the road, so I am definitely intrigued. Anyone have any advice for a first timer? Things to look out for?

Who's carrying the note and risks associated with potential budget (time and money) overages? What's the profit split? What about the cost of standard 1 yr warranty repairs, call-backs, etc.?

I had the opportunity to invest in a similar deal my builder wanted to do as he was debt constrained with his lenders on spec homes and couldn't put any more homes into production. My spidey senses went off as he wanted me to sign a purchase contract (affecting my DTI, I'm fully on the hook to buy if we don't have a buyer, etc.) that would allow the bank to lend him the money for acquisition, construction, etc.

I had no problem putting the 10% down to secure financing. But no way I touch a promissory note and cash deal for anything less than 60% of pre-tax profits. He wanted to give me 30-40%. Thankfully I paid attention to my gut and walked away. Would have broken ground right before the stupidity of supply chain issues and material cost increases...

But you can make damn good money doing it. Just don't put all your eggs in one basket and have as iron-clad of an "out" as you can manage.

Amateur pro-tip: never, ever, ever, ever personally sign for these types of loans/deals. Put it in an LLC or something. Never in your name. Ever.

The question is more importantly with how hot the current market is and how many people are building, why would he want or need a partner on a deal? I've been building homes over 20 years now and never seen a market like this. Normally joint venture types are sought after by builders in slow markets or those builders who are strapped for cash and need work. Just my $0.02

I do this all the time and love the model. Especially lots or land that is not in a subdivision where you are competing with other builders. If you build a solid house on decent or better dirt, you have a chance to do well. We are still something like 10 to 15 million houses short right now in this country. The next time a good property comes up for sale in your neighborhood, put an offer on it for fun to see how many other buyers you are fighting with for it.

As someone looking for acreage to build on there's nothing more annoying than seeing listings for large tracts with a home that doesn't suit me and my family, or some crappy barndo that the seller wants to be reimbursed for. News flash: no one cares about your poorly done barndos and old drafty houses that you slap a new coat of paint on and call it a day. And I don't want some 2200 sq ft house on a dream of a property with elaborate finishes that you want to charge me for. 3000 sq ft or higher or GTFO.

Ha, off my soapbox now. Good luck to you if you choose this path. Hope it goes well.