What Developing A Sub-division Looks Like (Live Call)

A live call reviewing a subdivision deal on Northeast property, walked through the way we would underwrite it in real time.

This is a live look at level three development: a real 27-lot subdivision that is about 30 days from full county approval, and the completed 50-lot project that came before it. Real costs, real timelines, and the exact deal structure that makes the whole thing safe.

What the paperwork stage costs

Before any dirt moves, this project is in for about $220,000 to $225,000. That is survey, geotech, traffic study, archaeological study, $50,000 of county fees across three meetings and reviews, and roughly $150,000 of civil engineering. The paperwork stage has taken about a year, and that is normal. You can build houses and even sixplexes forever and never need this level; it is a choice.

Sitework: one contractor, one bill

Once approvals land, an underground contractor builds out the entire subdivision, roads, sewer, water, curb, and sidewalk, for roughly $1.5 million. One company with its own piping crews, concrete crews, and project manager. One bill, no day-to-day management.

The $200,000 wetland surprise

On the 50-lot project, part of the site was wetland, and getting the road through cost $200,000 in wetland credits. The key: that surfaced during feasibility, before closing. Still under contract, Arthur showed the seller roughly $300,000 of problems and negotiated $200,000 off the price. The project still netted about $1.2 million on the lot sales alone, with all 50 finished lots sold to a national homebuilder.

The seller structure: 120-day feasibility, 18-month closing

Every one of our developments runs on the same terms. The pitch to the seller is honest math: your property is worth $500,000 raw today. Give me 18 months, I spend a couple hundred thousand getting it approved, and the bank values it at $900,000, so you get the bigger check. And if I disappear after spending $200,000 on approvals, your property is now worth $900,000 instead of $500,000. You win either way. Sellers sign.

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