HML on raw land any thoughts?

[Mike Mitchell]

A developer has approached me about borrowing $200,000 on raw land. He recently sold a tract next to it on the same freeway for $450,000. I'm not so concerned about the LTV as I am about the fact that it's raw land and is not worth much unless a buyer show up with funds. The developer plans to use the $200,000 to install water lines, sewer lines and for clearing the land of brush so that it's more marketable. I'm looking in the range of a total return of 33%/yr. The developer wants the funds for 15 months. Should the return be much higher on such a speculative venture? I realize that the land could sit there for years with no buyer showing up, I'm fully aware of my risks here. I'm just wanting some thoughts from some guys who have done HML's on raw land.