#1 · 7324 Cass Holt Rd, Holly Springs, NC 27540
| Line | Amount |
|---|---|
| Gross revenue — entitled lot sale (50 lots × $65,000/lot, homebuilder wholesale) | $3,250,000 |
| Land acquisition + closing (~2%) | ($765,000) |
| Construction — N/A (entitlement path; buyer/builder handles construction post-purchase) | N/A |
| Home On builder margin — N/A (entitlement path) | N/A |
| Entitlement / soft costs (survey, geotech, traffic study, civil engineering, rezoning legal) | ($175,000) |
| Contingency (10% of entitlement costs, AT COST — typically returned if unused) | ($17,500) |
| Land loan carry + closing (50% LTV · $375K · 10% APR · 24 mo. + 1.5% loan closing) | ($80,625) |
| Selling costs (3% land broker at closing — paid at land sale closing, not out-of-pocket) | ($97,500) |
| NET PROFIT TO INVESTOR | ~$2,114,375 · 65.1% margin · 319% cash-on-cash |
ARV support (entitlement lot sale): Cass Holt Crossing precedent — 2.3 du/ac on 46 ac. Conservatively modeled 50 units on 31.67 ac (1.58 du/ac). Holly Springs finished lot comps: 80 Beechwood Way $212,000 (1.23 ac retail custom lot); 909 Wilbon Rd $225,000/lot; 796 Estes Lane $450,000/lot. Wholesale to homebuilder (raw entitled, pre-infra) estimated $50K–$70K/unit; model uses $65K (mid-range conservative). New construction sold comps support $251–$289/SF ARV for optional build-out. MAO $2,049,334 — list $750K is 63% below MAO ($1.3M headroom).
GREAT for patient capital. You are buying growth-corridor land at rural-land prices ($23,675/ac) before the infrastructure arrives — the classic Triangle entitlement trade. The Cass Holt Corridor has every signal: adjacent 106-unit rezoning approved, $135M in WRF bonds to fund the extension, sewer corridor formally mapped, and a seller who has already cut $250K after 185 DOM. Entitlement path (primary): 24-month hold, rezone concurrent with Town sewer extension, sell 50 entitled lots at $65K/lot wholesale. Net profit ~$2,114,375 (65.1% margin, 319% cash-on-cash) on $663,125 out-of-pocket. MAO $2,049,334 — the $750K ask sits $1.3M below MAO, providing enormous cushion for negotiation and cost overruns. Optional Home On build-out (post-entitlement, secondary): Build 50 homes at 2,400 SF builder-grade, sell at $289/SF (new construction premium). Gross $34.68M, net ~$6.97M (20.1% margin), ~$7.6M OOP — suitable for a group syndication. Fall-back (no rezoning, well/septic at RR): ~25 lots, 2,400 SF homes; economics work at top ARV ($289/SF) but margin tightens to ~12% — verify rezoning path before contracting. Primary risk: sewer timeline slippage. If Town extension is delayed beyond 3–4 years, carry erodes returns. Verify the extension schedule before making an offer. Call the listing agent today — 185 DOM + 25% cut indicates the seller may negotiate further.