Land entitlement play in Atlanta

[Rivers Mann]

Hi Bigger-pockets,

Came here to ask for help or experience on land entitlement investments in Atlanta.

The Investment:

I have sourced an off market deal in the heart of Atlanta, it is a vacant single family home sitting on just over an acre of land. The seller has agreed to a price of $750,000. Home sales in the immediate area are anywhere from $350,000 to $500,000. My plan is to put the home under contract with a rezoning contingency, which the seller is ok with. I have an adequate team in place to began the rezoning process with the neighborhood and city. We believe we can rezone to allow for up to 24 townhomes.

My Experience:

While I am relatively young I have had plenty of experience. I have bought/sold/renovated 5 single family homes in the past 24 months and a vacant land lot. I have dealt with rezoning and have put a team together with multi family rezoning experience. Not only that but I have a great credit score and enough money in the bank to put 10-20% down. (While I would love to put nothing down)

The problem:

I have reached out to multiple hard money lenders and they are having a problem wrapping their head around this land entitlement play as there is not a true institutional loan for it. I have tried acquiring a bridge loan to no avail, I have hit the same issue with all of these companies. The main issue being that as the property sits you would not appraise it for $750,000 but I have no doubt that once we rezone it, it will appraise for well over that price. I have knowledge of a deal that will go under contract next month at .3 acres zoned for 6 townhomes for $650,000, which is just down the street. I am rushing to put this under contract before then.

What steps should I take to secure this deal? I would start asking around for personal investments from friends and family but dont know where to began.

Thanks for any information or help!