How do I find the best project JV for my piece of land?
Sorry if this is one of those annoying questions on the sub. I know most of the longtime subscribers here don’t like “newbie questions” where people are just looking for advice on what to do with their money etc. I’m a longtime lurker here and just enjoy reading the posts and trying to learn as much as I can. My “knowledge” on CRE is average, and that might be an overestimation. 

Long story short, my family has a piece of raw land, a little under 3acres in a city north of Houston. It’s on the main road in an area that’s really booming. We have major supermarket chains within a few miles of both directions. 

I have emailed a few different agents that valued it at double what we paid for it a few years ago. However, our intention was never to sell. We wanted to develop it into something that will maximize value and bring in a source of income via rent, etc. 

I don’t even want to attempt to develop this on my own because I know I will get eaten alive by contractors and other unexpected costs. Not to mention it would be impossible for me to secure a loan considering I have zero experience. 

So, if I am correct, my next best option is to enter into a JV with a reputable developer. In my mind, this means that we will put down the land as an investment and they will handle and pay for everything else (this is just a simplified version). 

I guess i have multiple questions here…. How do I find the best JV for my project? Should I just go on google and start calling different developers until I find a good fit? Do these types of deals usually have a sell price in mind? Meaning, the developer isn’t interested in building and holding, but rather building and selling asap since they’re investing a lot of cash? 

I really appreciate anyone that takes the time to read this and respond. Any advice or insults are welcome.
[{"id": "ilpivwu", "text": "DM me some contact info i know a developer out in texas that may be able to help.", "replies": [{"id": "ilpnt12", "text": "Thank you.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ilpqcn2", "text": "1. Put a realistic value on your land. Understanding if you want a JV partner, your structure is fine. I do these all the time. But your land cannot be overpriced. \n\n2. Just google commercial real estate redevelopment Houston. Start reading some articles and seeing who the players are.\n\n3. Prepare an email that shows all the key info and send it to whomever you find from research\n\nYou can message me. We have done work in Houston , mostly Sugarland area", "replies": [{"id": "ilpr703", "text": "I appreciate your response! \n\nIn regards to the value of the land. I\u2019m going by 3 different appraisals. So my numbers aren\u2019t far off. Plus, I imagine if I was to enter into an agreement with one of the big players, I\u2019m 100% they will also do their DD and not go by whatever I tell them. But I understand the importance of a realistic valuation so they know this is a serious inquiry and not just someone wasting their time. \n\nI will begin my google research and may send you the email points as a message. just to share since you\u2019ve done deals like this before. \n\nThanks again for taking the time to comment.", "replies": [{"id": "ilpvgc6", "text": "Just remember that your land valuation will have to consider leaving juice for the developer. So it will have to be less going into the deal with partner . With the ability to maximize on the exit.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ilpv7a8", "text": "Do you know what type of zoning the property has, I suggest going dow down to the city and discussing what could be built there.", "replies": [{"id": "ilq7oxs", "text": "It's zoned for commercial use. I even had some estimates to do a an office warehouse with retail frontage. This was pre-covid and originally the plan (about 6 years ago). Now I'm a little scared of the office warehouse idea. However, the property needs utilities, it needs a curb cut, it needs to be cleared of trees, etc. Lots and lots of money. I could definitely see a self-storage, a car wash, a doggy day care lol. Of course this is just all in my head and without any market research.", "replies": [{"id": "ilqeplw", "text": "Warehouses in my area boomed during Covid due to everyone ordering online. We have 145k sf of warehouse and had people knocking our door down to rent it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ilpwrd8", "text": "Would you consider a ground lease as an alternative to a JV? You can start cash flowing on the property right away. If you are contributing the land in a JV, you won\u2019t see anything upfront and have to wait for the developer to get approvals, build and then lease it out before you start seeing income. Then there\u2019s the question of what the developer\u2019s intentions are, if they aren\u2019t long term holders and want to flip out of it, then you are beholden to their desires. Or at least if your goal is to hold the property forever you\u2019re going to limit your interested pool in developers. You also likely save on upfront legal costs associated with having an attorney review a JV agreement and whatever requirements a developer may have if you bring their partner in a contract.\n\nhttps://www.globest.com/2022/08/24/the-modern-ground-lease-is-a-compelling-option-for-construction-financing/", "replies": [{"id": "ilq8ffk", "text": "Thank you for commenting and you bring up a lot of good points. That was the general gist of my post, was that I'd probably have a hard time finding developers if my intention was to keep the property and just collect rent from whatever was built considering they'd probably want to sell asap for a return.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ilq5rfj", "text": "Sell it and redeploy the proceeds.\n\nThis might work if you have a relationship already built up, and industry knowledge.\n\nBut it feels like you\u2019re gambling on being able to evaluate the person.  Also late in the cycle", "replies": [{"id": "ilq8o5l", "text": "Good points and accurate assumption. I'm definitely relying too much on being able to evaluate the person, but I also wouldn't make this decision on my own without consulting with lawyers and other people with expertise. Plus, at the end of the day, I feel like whether the person is \"good\" or \"bad\" it's really all about the agreement that both parties sign.", "replies": [], "depth": 2}], "depth": 1}]