My first new development deal I'm looking for a equity partner

[Saxxon Rybski]

I'm Working on my first new development project in Tucon az. I'm looking for an equity partner on this deal due to my lack of funds. The total cost is $5,680,000 and the arv is $7,900,000. 

The project is break ground ready now and will take 14 to 18 months from breaking ground. 840k is the cost of the land valued at 1.2m as it sits. 430k is the cost of the horizontal development and will take 2 months to complete. 4.41 million is the cost for the 14 home builds. The homes are 4/2 2100sqft and will cost 150 per sqft to build. 

My plan is to start with two homes for model homes. Then 4 homes at a time for the rest of the project. I will pre-sell the home as I build them.  

anyone with development experience I'd love to connect for insight on the the process. 

Thanks for reading looking forward to connecting with you

[Mike Smith]

@Saxxon Rybski It seems like you really have two projects going on:

1.  Take x acres of bare land and develop into 14 finished lots.

2.  Take 14 finished lots, build two model homes on them, and then build 4 spec homes 3 times.

A couple of quick takes:

1.  Your horizontal development costs of 30.7k per finished lot seems extremely low.  That would only work if there was minimal development done like no curb/gutter/sidewalk and individual septic's on each lot.  If it's a normal finished lot with curb/gutter/sidewalk, storm water retention, sewer/water/power, those numbers are from 3-4 years ago, and you will be closer to double that amount at today's prices.

2. It's not very common to build two model homes for a 14 home subdivision build out.

3. If you are not experienced in new construction, you are better off developing the 14 lots and selling them.  Now is not the time to cut your teeth in new construction because of material shortages, labor shortages and declining demand due to high home prices and high mortgage rates.