What would you do with 250k of private money at 7.5% to develop?

[Levi Caron]

I'm looking to partner on my first development project in a town outside of Jackson, WY. I just moved here last year and it is very expensive to do anything in Jackson. I started off as a buy and hold investor and bought 2 multi- families, one single family, and a partnership on a commercial warehouse. Since I moved to Jackson I've been looking for new opportunities within real estate. With doing research, networking and talking to realtors there is a demand for new construction for single family homes in the 300k price range. I found a partner who's a architect and has experience as a general contractor on a couple large jobs. He has a possible loan from his grandfather and I have 250k lined up from a private lender at 7.5%. Looking for advice on how to get this project started to be the most efficient with time and money. Our rough numbers right now are building cost at 130 sqft and selling it for 175ish sqft. We're looking at building a 1700sqft, single level, open floor plan, ranch style home. Is 30k a safe number for our profit margin? Also, if he gets a large enough loan we would consider building two at the same time to cut down on material cost.