SFH Development in North Carolina

[Joshua Stewart]

I posted a few weeks ago about an opportunity I have to purchase 14 acres, with current zoning allowing for the site to be developed into 5 home sites. Recently I have looked into the possibility of annexing the property into the city, and have met with city planning officials to understand that process, and it looks like it will be my best path forward as I could technically build up to 45-50 homes on it, but realistically I would go for about 20 with larger lots.

While the annexation and re-zoning seems more likely than not, it will take 4-6 months according to the official I met with until we have all of the approvals necessary. I would like to make an offer on the site, with an agreement in place that the sale only becomes effective once the city approves the annexation and re-zoning. During that time I will finalize whether I want to build and sell finished homes, or sell the lots with a design-build agreement included. I am leaning toward the latter as it would require less financing.

Being as this would be my first project on this scale, I would love feedback and ideas from BP members experienced in this based on my annexation and re-zoning idea. Is it reasonable to defer payments and finalizing the sale for 4-6 months until the annexation and re-zoning is approved?