| Line | Amount |
|---|---|
| Gross revenue — lot sales (35 lots × $75,000/lot to builder) | $2,625,000 |
| Land acquisition | ($799,000) |
| Land closing (~2% of land) | ($15,980) |
| Subdivision infra — work scope (35 lots × $20,000 cost/lot = $700,000 cost) | ($700,000) |
| Home On builder margin on infra (20% intro rate; standard 30%) | ($175,000) |
| Entitlement soft costs — survey, civil, permits, legal (at cost, no margin) | ($35,000) |
| Contingency (10% of infra scope, AT COST — typically returned if unused) | ($70,000) |
| Construction loan closing (1.5%) + carry (10% APR on draws, 18 mo) | ($120,083) |
| Selling costs (~7% of lot-sale revenue) — paid at closing, not out-of-pocket | ($183,750) |
| NET PROFIT TO INVESTOR | ~$526,187 · 20.0% margin · 90.6% cash-on-cash |
No house ARV modeled — this is a lot-sale/entitlement play. Comparable vacant RHD-zoned infill lots in downtown Johnston County municipalities are unverified (VERIFY with local builder). At $65k/lot (conservative): 8.8% margin — MARGINAL. At $75k/lot (base): 20.0% margin — GOOD. At $85k/lot (optimistic): 30%+ margin — GREAT. MAO: $799k (current ask IS at MAO for base case — negotiate down or verify higher lot values before signing. If lots confirm at $80k+, MAO rises to ~$835k and the $799k ask has real cushion).
7.08 acres of RHD-zoned infill in downtown Clayton with city sewer already on-site and a road stub ready to extend. The seller has a developer plat map — someone has been here before. At 35 entitled lots sold to a builder at $75k/lot, the investor nets +$526,187 (20.0% margin, 90.6% cash-on-cash) on $580,813 out-of-pocket. Cushion is thin at the exact asking price — negotiate to $775k and the margin improves to ~21.5%; get lots at $80k and margin climbs to ~25% ($700k+ net). The optionality to assemble the adjacent 5.87 acres for a 70+ unit play at no extra per-unit land cost is a material upside if those parcels can be negotiated. Call a local builder this week to gut-check $75k/lot absorption before making an offer.