How to make a million dollars with a capital partner with subdivision entitlements

[Jay Hinrichs]

Loudoun County Virginia

80 acre parcel

Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.

Purchase price  3.5 mil

EM deposits non refundable  50k up front 50k during

Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees)  350k

Capital partner  ME  provide all the cash up front.  450k to my client who found and prosecuted the plat

Multiple offers from all the biggest builders in that market  IE Toll  Lennar DR and a few regionals.

Closed today with 1.1 million cash profit  PLUS the 40 acres and home value about at least 2 mil free and clear.

My fee is double my money so we made 450k today.

My client made about 650k in cash and the property  free and clear.. 

This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.

this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..

My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.

The buyer was one of the companies named above it will hit the market for pre sales in a few months.

This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier.. 

[Henry Clark]

Anyone reading this post.  
Dont start with a large project.  Buy a house with 5 or 10 acres then split and sale.   Move up to 10 to 40 acres and split up into large lots.  Dint do small lots.   Then stay about the same size and then do small lots.  Start with a country subdivision versus a city one.  Go for rock roads and no water drain or septic systems.   When you move up to concrete roads and sidewalks.  Water drain and septic pipelines the cost almost doubles.  
Learn location value first before doing a large project.  Be on the side of town towards the next largest town.  Near a school or towards a rec area.  People line trees, water, walkouts, boulders.  Try not to pick flat farm ground.  Look for cheaper waste ground with trees, ditches which can be converted to ponds, sloped ground for walkout basements, views.  

Above all else make sure you have sweet ground water if in the countryside.  Good cell phone reception and internet.