if you have an option you don't own it If the builder wants the lot why don't you try to joint venture with him Change the lease with option to a subject to and a single payment note  at a price the owner of the lot would like @Sherri Southwellundefined

@Brandon Thoennes, feel free to stop by our meeting on April 12th at the Hyatt Place of Garden of the Gods.

Also, I'm aiming for big streets, or transportation hubs (subway station, train stops, etc).

Drive around and find anyone building in the area, stop and ask if they need more building lots and how much they would give for one describe your lot dont give address if it still seems like a good deal and builders will pay more then you can buy buy it for then go for it!

What that might leave is just the real deal ones to invest in. http://labusinessjournal.com/news/2016/feb/09/top-silicon-beach-venture-capitalist-warns-bloodba/

Are they looking at cash flow and stopping or are they using something else to forecast a couple years down the road?

Welcome to the site and I wish you the best of luck in your venture!

That being said, this is a new venture for me so I want to go into it prepared.

This assumes that you can support the $400k debt and that would not stop you from future deals.  

Third, stop being friendly and demand they move.