if you have NEVER done a build job or spec i think that financing will be your biggest hurdle.also your cash position is quite weak.. sometimes vertical lender will over look experience if you pay cash for the dirt.but leverage and no experience leads to no deal.. this would be a decent deal for a local builder given carrying cost sales costs etc etc.. how much they would cut you in for finding it and providing a little bit of cash is up to negotiation of course.

That nice return is the power of real estate and leverage at work!

I would be happy to start with 5 to 7, maybe then I can use them as leverage to secure a loan or interests from some investors or partners for future endeavors.

If they would be willing to carry a seller 2nd for a portion of the acquisition, it might help open some doors to a 1st position lender who may not want to leverage 80% LTV.

Don't forget to educate yourself in finance, law and marketing.

With or without leverage, through non-recourse loans and the potential UBIT?

We looked into several scenarios: making a few loans at 10% vs one per year vs. buying a rental property (with and without leverage) and the administrator fees will eat 40-60% of net annual income.

Use BP to educate yourself on wholesaling and bird dogging.  

This is going to help protect you and give you some great education going into your first deal.

Rural lots will probably be the last to reach full build-out, but that’s just my semi-educated guess.