What makes them fun is going through the exercise and come up with your prediction that is backed historical data or your own theory. 

I arrived at the estimates via licensed appraisers and a licensed contractor, so I'm quite confident actually.MFeel free...though you could also post it here as an exercise to get feedback from others as well...there are others who are much more versed in wholesaling than I am, though I can give you my perspective as a rehabber...

Well, this was an exciting and interesting short exercise in REI detective work.

You tell him what to do to infill the lots, and he is out of pocket the money needed to get the homes in there, and you collect a 10% management fee for your time and effort to turnaround the Park, and also agree with a bonus structure as Ed Emmons suggested.Once you have the Park full it will be well worth over the value of the Option and you can decide whether you want to sell the option for a profit or exercise it and take over the Park.Options can be tricky and many option purchasers want to have the title in escrow so that the Seller can't back out later when you want to exercise it.I would not spend a dime of your money on capital improvements or homes when you don't own the Park.  

One of my mentors had me do an exercise about coming to grips with one of my biggest fears, which at the time was fear of embarrassment.

Poor work ethics, drinking on the job, etc.If he does not finish you must exercise whatever stipulations that you have to resolve a breach in contract.Seek legal advice and have an attorney tell you what can be done.Depending on the state there may be a fund that you could receive damages from if he does not finish.I am no expert, but your contract should have been created by a lawyer or at least reviewed and include what you can do and should do in situations such as these.

I know some may be concerned about the "Due on Sales" clause in the mortgages, but I have yet to have a lender exercise that right.

In two years if the price drops AND you have to pay the 15% (or whatever it is) in capital gains then you are double screwed.My recommendation would be to sell it on a lease option with a 5% option consideration (or whatever is the going rate for the area) up front and require a minimum 12 - 18 months before the buyer can exercise their option.  

You have to vet the source and make sure what you are learning is correct.Next once you have determined you have the correct knowledge you need to implement it to have an impact in your life.Example: You could read the best exercise book in the world but until you place in action the newly learned accurate knowledge is going to waste.    

Escrow was 90 days and at the time there was no one we could find doing acquisition to construction loans, especially to a couple kooks so we got a private money loan at 8% interest, 60% LTV, Interest Only to close the deal.Early project rendering.The homes are 840 square feet each and were a challenging design exercise due to rigid site constraints: a restrictive FAR, flood plain and 30' coastal height limit that really gave us a very defined envelope in which to operate.