| Line | Amount |
|---|---|
| Land sale to TH builder — 25 entitled lots × $56,000/lot (base case) | $1,400,000 |
| Land acquisition — 4.54 ac, Durham, 25 TH entitled | ($850,000) |
| Land closing — 2% | ($17,000) |
| Carry — 10% APR, avg 50% drawn, 6-month hold | ($21,250) |
| Legal / survey / diligence | ($15,000) |
| Land sale commission — 3% | ($42,000) |
| NET PROFIT TO INVESTOR | ~$455,000 · 33% margin · ~50% CoC in 6 months | Upside: at $65K/lot → $625K net · 41% margin |
Land value support: Durham for-sale TH market $340-450K/unit; land component at 12-15% = $41-68K/TH lot. Comparable entitled TH land in Durham-Raleigh corridor has traded at $48-72K/TH lot in recent cycles per broker intel. Base case $56K/lot × 25 = $1.4M. MAO for 20% net margin = $1,005,000 — $155K above the $850K ask, confirming deal pencils at full price with cushion.
The entitlement work is done — this is a marketing task, not a development task. Buy for $850K, spend 6 months finding a TH builder, sell at $56K/lot = $455K net profit at 33% margin with no dirt moved. Fastest path to strong return in this scan. Best fit for an investor who can move quickly and has relationships with Triangle TH builders. Verify the entitlement recording immediately and canvas builders before submitting an offer.