Deal: Land W/ House Subdivide And Creative Financing
Deal: Land w/ house, rental on house $1150 / mo, $500,000, 3.0 acres, Seattle, WA - westside Kitsap County, short platte 4 lots - 6 mo, 12 lots long platte - 2 yrs, level lot, little dirt $, utilities available, development across street, house cost $170K, sell for $400K, Partner and I want creative financing and propose that the owner come in as a owner/partner. He provides the land/equity and we do all of the heavy lifting. We want to subdivide and then possibly build. My partner works for a builder and has all of the contacts. We want to bring in as little $ as possible on our end. Any suggestions? Options? What would an equitable ROI be 50-50? How much should short/long platte costs (just city fees, legal, and engineering plans no dirt moving) be? Plan - purchase or partner with owner for property (owner provides the land /equity) we finance or provide the $ for the platting, short platte into 4 sections (3 small 1 big) in 6 mo, we build 3 houses, long the other piece and build while awaiting the other section long platte approval. Any advice on structuring this deal? and the costs (soft costs of subdividing)?
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