Buying land with plans...help me understand how to evaluate

[Dakota Mivshek]

Here is one for you - any help much appreciated. 

Scenario - off market land deal. $700k for the land and the "plans". Estimated construction costs of $1.3m-1.5m. 9 units that can be condo or apartments. The condo's would sell for ~$325k/each. 

How could one approach this? 

1. How could I use other peoples money for the $700k?

2. They say the plans are 90% through the city almost ready for permits. Any red flags here? Why would the sellers decide to sell now?

3. And with the plans, what is next? I assume I have to use those plans to find a builder? 

4. The $1.3m-1.5m would be a construction loan correct? Interest only. 

Hope that helps get some feedback!

Best,

CM