Help Analyze this Spec Home Deal. Good enough for funding?

[Bruce Baker]

I'm an experienced builder who lost a lot of money when I invested into restaurants.  Hard lessoned learned, stick to what you know.  I'm trying to get back to my first love of custom home building.  The market I'm in, Charlotte NC, is very hot for new homes.  I have a deal in which a land owner will put up the land, interest free, even take a second position in deal, he gets paid out when the project sells.  The subdivision is very nice, a recent new build that I'm basing my comps off of sold for $300k.

Lot: $48k - free and clear- owner putting it up.

Construction Costs- $180k for a 2200 sq ft bungalow, on slab foundation, with nice upgrades

City utilities and flat fully treed lot.

Total All in including the lot $228,000

Sales price - $300,000 on the low side.

4-5 month build time.

Does this deal make sense? 

[Account Closed]

You should be able to get the 180k funded since the LTV will be so low, provided the lot seller is willing to subordinate. That being said, I agree with @Scott Patterson that this is a thin deal.  Are you splitting profits with lot seller?