What Landowners Should Know Before Partnering With A Developer

Many families own land they have held for generations but have no experience developing. They know the property has value. They are less sure what should be built on it, who should build it, or how to avoid ending up with a project the neighbors resent.

Daniel Kaufman, founder of Kaufman & Company, says landowners in that position contact his team regularly. Often the message is simple: I have this land and I dont know what to do with it. His Los Angeles-based holding company works with landowners as a joint venture partner, and he says the best outcomes come from treating the land as one piece of a larger plan that includes the owner, the developer, and the community.

You Do Not Need to Be a Developer to Benefit From Your Land

In a joint venture, each partner contributes something different. Kaufman calls it bringing ingenuity. For one partner that might be capital or construction expertise. For another it is a tenant, a technology, or the land itself.

We like to have partners that are bringing something else other than money, Kaufman said. Land is one of the most valuable contributions a partner can make, especially for owners who do not want to sell outright but also do not want to become builders.

On a recent project, a family that has owned a property for generations approached Kaufman & Company after hearing about the firms work. They are not developers. Kaufmans team brought in its advisory and consulting group, its construction team, and Mr. Good Container, a partner that builds affordable housing, to plan single-family homes on the site.

Bring Community Into Conversation

One of Kaufmans recent deals started with a phone call from a city councilor, not a landowner. A constituents family owned a parcel, and the councilor worried that another developer would build something that did not fit the community.

Other developers had pitched commercial uses and a data center. The community wanted something different: mixed-income housing, senior housing, a community center, and specific amenities. The councilor brought Kaufmans team and the family together, and the plan was built around those priorities.

For landowners, the lesson is that local support can shape what is possible on your site. A plan that reflects what residents and elected officials actually need is more likely to move through approvals. Kaufman & Companys Greenview Residences case study describes the same approach in practice, with early feasibility studies, zoning assessments, and regular communication with local authorities built into the planning phase.

Expect Compromise on Both Sides

A good partnership does not mean every party gets everything it wants. Kaufman is direct about this. The plan only works if the developer can make money, and that sometimes means the landowner gives up a preferred use or feature.

Were there some sacrifices they had to make? Because, hey, look, we cant do everything, he said of the councilor-led deal. But at the end, we built a real compromise or real consensus.

Landowners should go into early conversations knowing which priorities are firm and which are flexible. That makes it easier to evaluate a proposal honestly, rather than rejecting a workable plan over a detail that matters less than it seems.

Look for a Partner Who Is Flexible About What Gets Built

Some developers only build one product. If your land does not suit that product, they will either pass or try to force it. Kaufman describes his platform as asset class agnostic, meaning the team looks at a site for its best use rather than a predetermined one.

Sure, could it be a data center? Could it be a power plant? Could it be affordable housing? Could it be market rate housing? Could it be commercial? Could it be storage, industrial? he said. That flexibility gives landowners more options, especially when community input points away from the original idea.

Kaufman also encourages landowners to pay attention to how a developer handles the process, not just the proposal. Patience, open communication, and a willingness to work with local officials tend to predict how the partnership will go once construction starts.

Kaufman & Company is a Los Angeles-based permanent-capital holding company founded by Daniel Kaufman. The platform spans residential development, workforce housing, AI infrastructure, and venture capital across ten operating companies.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.

Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.

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