Getting creative to Fund LARGE project

[Joey Locker]

I have a large land development project. I think it is important to have back up plans for your back up plans when it comes to funding. So that brings me to an idea I had that I wanted to put out in the group to get some feedback on.

The plan would be to buy the land with "Lender A", land is $3,000,000. The plan is to subdivide the land for owners to have a lot within a gated community. That HOA community will have its own clubhouse and pool. The community will ultimately be part of a much larger resort that will have a boardwalk park, walking trails, larger community clubhouse/resort style pool and a restaurant.

The idea I had for a funding strategy for the development would be to presale 30% of the lots available, once zoning and lot layouts approved in the coming weeks. The funds from the 30% presale would be enough to cover development cost for the entire phase 1 of the project. The question is, assuming owners would pay in full for the lots for a discounted rate to possibly resale later, can I use those funds to develop the land?

Thank you,