Most landowners receive their first developer approach with a straightforward offer: a purchase price, a due diligence period, and a closing date. That's the default frame developers use because it's the one that favors them.

But an outright sale is rarely the only option — and for landowners with the right parcel in the right location, it often isn't the best one either.

The Four Structures Worth Understanding

1. Outright Sale

You sell the land, receive a lump sum at closing, and walk away. The developer takes all upside from that point forward. For landowners who need liquidity, have a high basis, or have no interest in ongoing involvement, this may be the right choice — but the price offered by the developer is rarely the land's full market value when you account for the project potential.

2. Ground Lease

You retain ownership of the land and lease it to the developer for a defined term (typically 50–99 years). The developer builds on the land and pays you a lease payment — typically quarterly or annually. At the end of the lease, the land reverts to you (or your heirs), often with improvements.

For landowners with a low basis or strong estate planning motivations, a ground lease can generate significant income without triggering a taxable sale event. It also preserves intergenerational wealth in the land itself.

3. Joint Venture

You contribute land as equity in a joint venture with the developer. Rather than selling the land, you receive a percentage of the project's equity — and therefore a share of development profit, not just the value of the raw dirt.

Joint ventures require a higher level of engagement and trust in the developer, but they allow landowners to participate in the upside of what the land becomes — not just what it was worth the day the deal was signed.

4. Seller Financing

You sell the land but hold a note rather than receiving the full purchase price at closing. The developer pays you principal plus interest over time. This creates ongoing income and can provide favorable tax treatment through installment sale rules — spreading capital gains recognition across the payment period.

How to Choose

The right structure depends on your answers to a few fundamental questions:

  • Do you need liquidity now, or can you wait for returns over time?
  • What is your tax basis in the land? A low-basis parcel sold outright can produce a significant tax event.
  • Is retaining ownership of the land important to you or your family?
  • Do you trust the developer and want to participate in the upside?

These are questions worth working through with a qualified advisor — and with an intermediary who represents your interests, not the developer's.

What Amigos Capital Group Does for Landowners

We don't represent developers when we work with landowners. We represent the landowner's outcome: maximizing value, identifying the right developer for the land type, and structuring the transaction in a way that serves the landowner's actual objectives — not just the developer's acquisition checklist.

If you own land in Texas or the Sunbelt and have been approached by a developer, we're worth a 30-minute call before you respond.