Property for Equity · Owner FAQ
Straight answers, before you ask twice.
The honest version of how Property for Equity works for a Florida property owner — what you put in (nothing in cash), where you sit when the project pays out, what the developer earns, and what happens if a project never gets built. No jargon, no overpromising.
The basics
What this is — and what it costs you.
Start here if you're new to the idea. You contribute your property as equity; we fund, permit, build and sell. You bring no cash and sign no personal guarantee.
What exactly is "Property for Equity"?
You contribute your property as equity into a single, project-specific joint-venture LLC. River Business Corp funds, permits, builds, and sells the project. Instead of selling at today's as-is price, you hold a stake and participate in the developed value — and the developer is paid last.
Do I have to put in any money?
No. You contribute the property as your equity. The project's cash comes from third-party capital partners we arrange, and the developer carries the diligence costs and the construction-overrun risk. You also don't sign a personal guarantee on the construction loan — the developer personally guarantees the construction loan, not you.
Will I lose my property?
You keep title until the Definitive Agreement, the financing commitment, and clear-title conditions are all met. After contribution, if the developer misses the financing or construction-start milestones, the land reverts to you free and clear under the milestone-reversion protection.
What happens to my mortgage?
Contribution requires clear title, so any existing financing is addressed up front. We structure the payoff or handling of the existing loan as part of the deal, confirmed during due diligence and documented in the Definitive Agreement.
How long does it take?
It varies by project. Development takes time — diligence, permitting, construction, then sales — and your participation is illiquid while the project is underway. We share a realistic timeline for your specific property in the proposal. In some structures your contributed capital can begin returning earlier than a full project exit, but that depends on the deal and is illustrative, not a promise.
The economics
How you're paid — and what the developer earns.
The part owners most want pinned down: how your share is set, where you sit in line, and what the developer takes (and when).
How is my equity percentage decided?
Your stake is based on your property's appraised value relative to the total project cost — roughly land value ÷ total project cost. That commonly lands anywhere from about 10% to 50%+ depending on the deal. The exact figure for your property is set in that project's documents, from an independent appraisal, by our deterministic engine — never estimated off the cuff. Your percentage is fixed and protected from dilution.
In what order does everyone get paid?
The senior construction loan is repaid first (a lender step, not an equity tier). Then the equity members — including you — receive their contributed value back plus the preferred-return floor. Then profit is shared. The developer's own profit comes last.
Is the preferred return guaranteed?
No. The preferred return is a priority position — a floor on the order of payment that sits ahead of the developer's carry. It's paid from the project's profit when the project performs; it is not a guarantee that profit will exist. All projections are estimates, and these are speculative investments that can lose value.
What does the developer get?
Two things, and both come behind you. A development fee equal to 5% of construction cost, plus a residual promote — the profit that remains after every member is made whole. The developer brings the funding, carries the development risk, personally guarantees the construction loan, and is paid last.
Why would I do this instead of just selling?
Selling locks in today's as-is price and hands the future developed value to your buyer. Contributing as equity stops your monthly carrying costs, puts your capital in a priority position, and lets you share in the value created once the property is built — without a fire-sale discount.
Can I really come out ahead of selling?
In favorable scenarios, yes — by participating in the developed value rather than the discounted as-is price. But outcomes are projected, not guaranteed, and depend on the specific deal, the market, and execution. We always show three scenarios — conservative, realistic, and optimistic — never best-case only.
Risk, control & your partner
The honest risks, who decides, and who you're working with.
Development carries real risk. Here's how it's shared, what say you keep, and what happens if a project never gets off the ground.
What are the risks? Be honest.
Real estate development carries real risk. Projects take time, your participation is illiquid while construction is underway, market conditions can change, costs can run over, and there is risk of loss. We protect the property side hard — no cash from you, no personal guarantee from you, you're paid ahead of the developer, and there's a milestone-reversion path — but no one can promise an outcome, and we won't pretend otherwise.
What if the project doesn't get built?
Deals are structured around performance milestones. If the developer misses the financing or construction-start milestones, a reversion path is designed to return the property to you, free and clear. The exact mechanics are spelled out in each project's definitive documents.
Who makes the decisions?
The developer runs day-to-day execution, but you review and approve the construction financing and the major decisions defined in the agreement, and your economics are fixed and non-diluted.
Are there tax advantages to contributing instead of selling?
There may be. Contributing appreciated property to a partnership in exchange for an interest can defer the capital-gains event a sale would trigger (often discussed under IRC §721), and some projects sit in Opportunity Zones with their own tax incentives. These depend entirely on your situation — this is not tax advice; please consult your own tax professional.
Who am I actually partnering with?
River Business Corp, a vertically integrated Florida developer with 25+ years, 350+ projects, and $200M+ delivered, led by a named, accountable principal who signs the construction-loan guarantee. Licensable construction work is performed under the qualifier of record, in good standing with the Florida DBPR. We work with owners in English, Spanish, and Portuguese.
How do I find out what my specific property could do?
We prepare a confidential, property-specific analysis with three scenarios — conservative, realistic, and optimistic — based on an independent appraisal and our deterministic underwriting. It's illustrative, not a promise, and it's the right place to see real numbers for your property. Start with a free property review through relp.pro.
Still have a question?
Ask us about your property directly.
Send us the address (or a Zillow / LoopNet / Crexi link). We'll study it and show you — with no obligation — what it could support and how a Property for Equity partnership might work for you.
Get a free property review →Important disclosures
This material is preliminary and for informational purposes only. It is not an offer to sell or a solicitation of an offer to buy any security. Any offering will be made only to qualified parties through definitive offering documents, which will contain material risk factors and supersede this material in full. Projections and scenarios are estimates based on stated assumptions and are not guarantees of performance; actual results will differ. Investments of this type are speculative, illiquid, and involve risk of loss, including total loss of capital. Consult your own legal, tax, and financial advisors.
Property for Equity and Funds for Equity are programs of River Business Corp. Any partnership is project-specific and subject to due diligence, mutual agreement, and final documents. Tax treatment depends on your circumstances; consult your own tax advisor.