Land development in st. Paul Minnesota

[Dain Boelter]

Im just looking for general information and strategy suggestions. We have two lots of land in south Saint Paul Minnesota which total approximately 2 acres right next to each other. The houses themselves aren't worth much but the city isn't building anything under $1m in the area now. We have been approached by a contractor to buy parts of the lots on the frontage roads to place approximately 3 houses. He would pay us $1.3 mil for the land and an undetermined % of the sale price of the homes. We would still have some land behind the homes not sure how much as of now. Also I have the potential to buy the neighbors lot of another acre guessing I could get it for $300-400k. What can I do to maximize profits in this situation? Is this a decent deal? Could I develop myself? I only have experience in buying properties to fix up and rent. Any advice would be much appreciated.