Best Terms For Owner Financing 490 Acres of Land To Develop For Co-Housing

[Bret N.]

I need a disinterested party's thoughts on establishing the best terms of an owner finance land development. I seem to be blinded with the emotional aspect of just how rare of a deal this is.

Rare as in 490 acres of untouched land right outside my town that my friends family has owned for almost 200 years.

What is even better? They have not sold it to just anyone because they didn't want it to be another cookie cutter mountain top community.( I am looking to put in a Co-housing Community)

So the return on investment is more from the stance of putting my name to something unique to my area & something I am passionate about. ROI is good yes, but not the best deal I gave ever done from a financial aspect.

How do I need help?

The family pretty much told me to layout the terms as to what I felt was fair.

The example below is a scenario I need help with for the variables or numbers used are not the part where I am drawing that "crickets chirping moment" . I need to make sure there are not better arrangements for such a scenario that I am not thinking of. The scenario I threw @ them:

Owner finance @ a reasonable rate (TBD)

10 percent down(That too is flexible)

Balloon due in 5 years(Or would installments after a X lots are sold, areas are timbered, etc)

More info

490 acres(purchase price..750kish. I am stilling working on this. (They are friends AND also my accountant and tight in my SOI ) a conservative estimate of say, 60 houses seats that can be built and sold over 5 years to recop purchase price. 50k net on each house.

Any inisight?

Hopefully this makes sense. It's hard for me to convey certain deals with so many variables in a email or forum.

Cheers~!