How much profit will we make?

Author

Spencer Barber
March 08, 2025

Anyone who has followed every email up to this point knows that I’ve probably changed plans 25 times regarding this project. Our latest plan is to sell lots, which we are already doing. We need the liquidity from selling lots since we haven’t found lenders.

We have sold our first two lots so far.

Here is a recent breakdown of our project and how I anticipate making $3M-$5M if we just sold lots.

My Costs so far:

  • Land: $1.9M

  • Accounting: $36K

  • Advertising: $35K

  • Architecture: $51K

  • Engineering: $182K

  • Legal: $35K

  • Payroll: $224K

  • Travel: $99K

  • Rent: $135K

  • Other Costs: $105K

  • Total: $2.8M

Remaining Costs: 

  • Earthworks: $340K 

  • Stormwater System: $205K 

  • Sanitary System: $120K 

  • Potable Water System: $110K 

  • Asphalt Pavement: $370K 

  • Curbs and Sidewalks: $255K 

  • Pavers: $120K 

  • Electrical Conduits System: $315K 

  • Electrical Lines: $255K 

  • Outdoor Lighting: $100K 

  • Telecommunications System: $140K 

  • Guard Booth: $110K 

  • Wall: $100K 

  • Fence: $70K 

  • Treatment Plant: $150K 

  • Amenities: $500K 

  • VAT Tax: $360K 

  • Company Expenses: $160K 

  • Total: $3.8M

Closing Cost and Agent Fees Estimate: $750K 

Total Project Cost: $7.35M 

We sold our first two lots at $187 per square meter. We had those same buyers asking to buy multiple lots, which confirms that we are underpriced. 

There are four comparable projects near us that currently have lots for sale. If I eliminate any lots that have an ocean view, then the range of pricing is $240/m² - $625/m². 

We are now selling our next two lots at $204/m². We will gradually raise our prices as we sell more lots. Once we’ve sold between 10-15 lots, which will secure the funds needed to finish the project, we plan on raising the price significantly.

We believe that we can get our average lot price to $275/m² while still maintaining a sales velocity that allows us to sell all the lots in 18 months, assuming we can get our model home built on time. We believe getting a model home and our amenities built are key to getting the highest price on the lots. 

Our lots total 45,213 m², putting total sales just under $12.5M if we sold them all at an average price of $275/m². 

We are trying to get a video out weekly to document the journey of building this project as well as building out a future development company. 

This is the latest video. This video covers the first two weeks of February.