Andres Aviles · Real Estate + Lending
Land Development Feasibility
Screen the dirt, stress the deal, structure the financing, and plan the sell-through — before anyone writes an offer.
01
The play
02
The property
03
Lot yield
04
Revenue
05
Costs
06
Timeline & phasing
≈ 34 mo total (2.8 yrs) · 1 phase
07
Financing structure
Land loan
Construction / development facility
08
Sale & target
Andres Aviles · Real Estate + Lending · Investment Screening Memo
Land Development Feasibility
40 acres · 86 homes · $2,400,000 asking · 34 mo · 1 phase
The read
Doesn't pencil
Max land value
-$6,480,801
to hit target margin
Profit at asking
-$4,111,219
-12.4% margin
Returns over the hold
Levered IRR
-92.4%
annualized, to equity
Equity multiple
0.00×
cash out ÷ cash in
Peak capital
$4,125,328
deepest cash exposure
Duration
34 months
2.8 yrs · 12 dev
Cash to equity over time (the J-curve)
What breaks this deal
stress: −5% price · +1% rate · −40% pace
| Scenario | Read | Profit | IRR |
|---|---|---|---|
| Upside | Doesn't pencil | -$2,149,962 | -33.5% |
| Base case | Doesn't pencil | -$4,111,219 | -92.4% |
| Downside | Doesn't pencil | -$6,768,277 | — |
To hit a 15% IRR
The negotiating numbers — everything else held at your current inputs.
Max land price
$1k
pay no more than this
Min home price
$450k
need at least this
Min sell pace
30.0/mo
slower kills it
Financing structure
Land loan
$1,320,000
55% LTV · 9.5% · 1.5 pts
Construction facility
$21,954,603
70% · 9% · 1 pts
Equity required
$4,125,328
total cash you bring in
Peak capital
$4,125,328
max out-of-pocket at once
Total interest over the hold ≈ $1,123,888; points ≈ $239,346. I structure both facilities through NEXA (NMLS #2640511), so the financing and the deal analysis come from one desk.
Disposition plan
Retail sell-through of 86 homes at $385,000, ~4/mo, ~22 months to clear. I list and market each release as it delivers.
Gross sales
$33,110,000
Sales cost
$1,986,600
6% all-in
Listing & disposition handled under AXEN Realty (TREC #0680266).
Where the revenue goes
$33,110,000 total
Development cost$32,834,619
Sales cost$1,986,600
Land (asking)$2,400,000
Profit$0
—
The numbers
Lots / units86
Home price$385,000
Gross revenue$33,110,000
Site development$3,870,000
Vertical construction$22,059,000
Soft costs$3,111,480
Contingency$2,323,238
Loan interest$1,123,888
Loan points$239,346
Property carry$107,667
Land (asking)$2,400,000
Total project cost$37,221,219
Compare deals
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One point of contact, start to finish.
Land and construction financing, then lot sales or retail home sales — one person watching the whole game plan, not four.
Andres Aviles · 214.908.5914 · loans@andresaviles.com · homes@andresaviles.com
Andres Aviles · AXEN Realty, TREC #0680266 · NEXA Lending, NMLS #2640511. This is a screening estimate for discussion only — not a commitment to lend, a loan estimate, an appraisal, a guarantee of yield or returns, or investment advice. All figures are user-entered assumptions and must be verified with an engineer, appraiser, and lender before acquisition.
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