Land Funding Blueprint: Partnership Agreements, Terms and Conditions and More

The REtipster Podcast | Real Estate Investing

For many years in my land investing journey, the biggest challenge I faced was access to capital. I had to walk away from countless opportunities to buy properties at a fraction of their market value simply because I didn't have the funds, and most banks wanted nothing to do with these kinds of deals. The landscape of land investing has changed significantly over the past 15 years. With thousands of new investors entering the field, the emergence of land funders has opened new avenues for those who know how to find deals but lack the money to close them.
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In this episode, we'll dive deep into land funding—a fascinating sub-niche where funders provide the necessary capital for deals and share the profits with operators. We'll explore how these partnerships are structured, the key elements to consider when drafting a funding agreement, and the different "recipes" that funders and operators use to divide responsibilities and ensure a successful partnership. Whether you're a seasoned investor or just getting started, understanding these strategies could be the key to unlocking new opportunities in your land investing journey.

Chapters

1. Land Funding Blueprint: Partnership Agreements, Terms and Conditions and More (00:00:00)

2. Introduction to Land Funding (00:00:59)

3. The Constraint of Capital (00:07:50)

4. The Rise of Funding Opportunities (00:08:43)

5. Understanding Operators and Funders (00:09:33)

6. Crafting the Partnership Agreement (00:11:38)

7. Key Considerations for Funding Agreements (00:14:13)

8. Scenarios for Funders and Operators (00:17:15)

9. Holding Title: Who's Responsible? (00:21:04)

10. Covering Costs in the Agreement (00:23:53)

11. Selling the Property: Responsibilities (00:26:35)

12. Decision-Making in the Sale Process (00:28:45)

13. Defining Profit and Loss (00:30:51)

14. Record Keeping and Accountability (00:33:22)

15. Conclusion: The Power of Partnerships (00:35:32)