The party interested in working with Summit Homes submits an application for their property. Summit Homes begins its review of the site with the applicant, which may take 1 to 4 weeks dependent on property details.
If the land site is a fit, Summit Homes will joint venture with the landowner and develop the site without a construction loan (no mortgage lien required). Proceeds from developed unit sales would be split with the land partner (per land contribution in a development project).
We do not need to work with complicated waterfall structures with multiple tiers. It would be a set percentage split of profits. For example, if the land partner is 25% of the project, then they receive 25% of all profits as the units are sold. We try to keep things as simple as possible.
Once infrastructure is in-place, the construction of the homes and its marketing will begin. With our model, the exit plan (all units sold) typically completes within a 2-year period.
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