Commercial Real Estate

Where is it? I am a Texas attorney but I have dabbled with this sort of thing in a couple of other places (Kentucky, Ohio). I would imagine getting the zoning on a big warehouse lot would not be easy, but it can be done. Usually you have to file a petition with the city council or county commissioners but sometimes the local government will have a some sort of comprehensive 'Land Use Plan' that you have to go by and it can be a bitch to try to get a variance (exception) deviating from the plan. As far as helping you figure out how to go about doing it, you need to provide more information. Specifically, it would be good to know what state, county, and municipality in which the property is located as well what it is currently zoned as.

Talk to a lawyer - that's who you're going to need to write up any agreement anyway, right?

Let me see if I understand what you want to do. You have an investor that wants take sole ownership of the property and then enter a contract with you whereby he would grant you an undivided interest in the property (thereby making you a co-owner) in an amount corresponding to how much equity you add to the property via leg work you put in to get the place renovated/developed/etc. right?

Unless you guys are going to set up a formal partnership, this sort of arrangement is going to involve a very complex contract. You're going to have to come to terms on the method used to determine the value of the property, on the amount of ownership interest you would receive, when you would receive it, how you receive it (for example, is he going to give you a deed or is he going to give you shares in an LLC that he set up to take ownership of the property instead of his personal name), and on what conditions you would receive it. Additionally, you would have to address practical considerations such as you getting a power of attorney or some kind of agency agreement in place in order for you to actually do stuff with the property while not actually owning it. Also, getting a good real estate lawyer is a good idea, ESPECIALLY if you are clueless. The whole point of buying legal services is to have someone who knows way more than you about technical legal stuff show you the best way to go about your business. Just be frank with the lawyer and explain exactly what you want to do and ask for advice about the best way to accomplish it along with an explanation of all the possible ways the investor could rip you off.

Picasso_sl said:

I understand. The partner is a (future) father in law who wants to see this done and eventually be bought out so a formal partnership may be the way to go. His main concern is having money tied up and being hampered if he wants to eject.
I totally understand that the only thing i want to ensure that if the building ends up selling for significantly more i would see my share.

I just need to set down and read all i can and then hire someone.. but all free info certainly appreciated.

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GF is a lawyer giving you legal advice for a deal with her father. Sounds like a disaster waiting to happen. No way to fuck up a personal relationship quite like adding business in... or vice versa.