Joint venture in multi-family development?
I am about to open escrow on a versatile commercial property that, after preliminary market analysis, I have found multi-family to be the highest and best use for. However, the capital costs for the development’s financing is too high for my risk tolerance at present. Before abandoning this particular use, I am exploring my options for outside funding. Naturally, I concluded that approaching an experienced development firm with a joint venture proposal may be a good place to start. 

Does anyone have any familiarity with these ventures and are they at all commonplace? Because I believe the location is highly lucrative by anyone’s standards, my proposal would be in the neighborhood of a 50/50 division of the property’s shares for a 2/3 contribution of the financing cost. I’d also appreciate any input on if this structure is realistic, or if residential joint ventures are more “pound-for-pound”. 

Thanks 
[{"id": "e0lit1y", "text": "If all you need is money why would you go to a developer for a JV?  Why not just seek other investors?", "replies": [{"id": "e0m48oa", "text": "Because it is going to be my first multi family development and I felt I would benefit from observing their process and I am not going to be managing the site", "replies": [{"id": "e0mi50v", "text": "All of the other points here are valid.  The point is you are dead weight to the developer.  He doesn't want to carry you and you receive a share of *his* developer profits for the value *he* adds to the real estate.  The only guy that would sign up for that is maybe someone who just sees money and isn't really qualified to do the deal.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e0lkp38", "text": "So you are repositioning the asset or is it ground-up development?\n\nAre you looking for a development partner that also brings capital or just a capital partner?\n\nA lot more info is needed but I would say asking a developer to bring all of the development expertise and 1/3 of the equity for 1/2 of the profits would be a bad deal for them unless they are A.) Not very good/experienced or B.) you allow for higher management fees. ", "replies": [], "depth": 1}, {"id": "e0lsrvu", "text": "So you want them to contribute 2/3 of the cost for half of the equity?", "replies": [], "depth": 1}, {"id": "e0ltshj", "text": "So are you thinking about going to the developer as the GP? If you're going to self manage I wouldn't go that route. I'd source the additional equity from other people, or possibly go mezz if the deal is big enough and you can value add &gt; refi your way into traditional debt/equity to take out the expensive money\n\nSo you want them to have a 50% ownership and bring 66% of the equity? So you're basically getting paid 16% on cost for sourcing the deal. Generally speaking that's high\n\n", "replies": [], "depth": 1}]