Land Subdivision Process

[Nick Burkhardt]

BP Land Developers/REI,

I'm trying to understand how a potential deal would work and need some help/advice on buying raw land and subdividing lots off of it and then building my dream business (Biergarten/Wedding Venue). I have a deal in mind...

Part 1
$220,000 for 46 acres, some of which over looks a beautiful lake in Maine. There exists a master plan (which would need to be tweaked for my idea - read on!) for ten 1-1.5 acre lots. There is a rough cleared road, but no actual road/water or electricity. My first question is if I put down 30% to secure the land (66K - all my capital), could I immediately begin selling the lots?, taking the profit and using it to build the road, bring utilities to the lots etc. Basically just do one lot at a time? My market demands about 60K for a 1-1.5 acre lot. Assuming each lot requires 20K to develop (is this a decent estimate?), say the first lot sells, I develop that lot and 2 others. Those 2 sell and I have 120K to develop the next 6 lots. Those 6 sell and I develop that final lot for 20K out of my 360K profit. Leaving me with 340K profit. Does this all sound possible? What am I forgetting?

Part 2
I've used 15-20 acres on the subdivision and now have the capital necessary to develop my dream business of owning and operating a biergarten/wedding venue. The open air pavilion would look out over the lake and the biergarten would serve as the reception space when weddings are booked. I would do much of the clearing and building myself as my family owns a construction company, but I would basically just build as much as possible for the 340K on the remaining 26 acres of land.

Is this possible in the order I've laid out? Thanks so much!!

-Nick