Creative ways to finance a minor land subdivision in CA.

[Alyssa Shaeffer]

My husband and I have been researching and learning so much about a particular lot in Newcastle, CA where we are from.  This project is intended to be a short-term (12-18 month) financial investment, of buying a large parcel and subdividing it into 4 separate parcels, with potential for a large return on investment and fairly large room for sale price adjustment without hurting the bottom-line, after the sale of 3 of those 4 parcels.

In a nutshell, this particular lot is 59.38 acres and is zoned for 5 acre min. We are wanting to split into 3, 15 acre lots to not be considered a major subdivision (it starts to get crazy with roads, curbs, utilities, etc), but as a minor subdivision (4 parcels), we will be able to bypass those expensive improvements.  Also, in our county, if we sell those 3, 15 acre parcels the future owner could have the potential to create 3, 5 acre lots to sell off as well.

Each lot would need to have a well drilled and perc and mantle done.  We also need to create a 20 ft paved driveway road to access the lots.  I have already called and have gotten quotes on how much the project would be and timelines.  Our county would also take 6-8 months to finalize the minor subdivision.

A breakdown of the finances of the project is:

Cost of lot is currently listed for 1.88M, however has not sold in 411 days and should be more of 1.6M.  My realtor wanted to start at 1.45M, although realistically, I see it selling closer to 1.6M.  

The owner is willing to do an owner carry for about 30% down.

Cost of hard and soft cost is around 135K

Each 15 acre lot (we would have 3), could sell from 750K-900K (I have confirmed this with 3 separate realtors).  

Land in our area, if priced right, is selling in about 23 days.

If parcel purchased at 1.65M and each lot sold between 750K-900K, after interest payment, property tax, etc. the return is between 340K-795K (GRANTED this does not include any capital gains tax...I currently have a phone called planned with a real estate tax attorney to know those costs so we can have a better indication of what our true NET would be).

This parcel is absolutely in the path of progress.  There is a 1,800 unit development right around it and our parcel is in a great school district, with multiple build sites and amazing views!

I have a proposal written up that we sent to my husbands brother -in-law because he has a lot of equity in his home that we were asking to access, but they don't really understand this process and are not risk takers.

Is there ANY WAY that we could find a way to finance the down payment this type of project?  My husband and I could pay for carrying costs, but we do not have access to a a large sum of money to pay for the down payment and most of the soft and hard costs.  I truly believe that there is always a way to access money, but have run into several roadblocks so far. Any type of advice, or what we are missing, would be GREATLY appreciated. 

Thank you so much for you time!