One way to get into the business of land development is to go looking for a home site in Potomac.

Eugene Holloway did that a few years ago. Now he and his family live in a house built by the Crowell-Baker team on Riverwood Drive, about two miles west of Potomac Village off River Road.

An attorney-acountant with Peat, Marwick, Mitchell & Coor, Holloway is also a partner in two development groups. Along with Anthony Natelli and Dennis Myer in the HMN Group, he is a developer on Riverwood Drive.

Holloway, Natelli and Myer also have formed Potomac Investors Associates, which recently purchased the 209-acre Heurich tract, four miles beyond the village and between River Road and the C&O Canal, for more than $2 million. Natelli said that half of the first 50 lots, which will have septic tanks and well water, have been sold. Other lots will be developed with public sewer and water hookups.

Natelli, who also lives in Potomac, was with Peat, Marwick, Mitchell until two years ago. He said Holloway plans to go into development till time next years. Myer is an attorney who lives in Virginia.

Maxine Schwartzman, who specializes in Potomac properties for Snider Bros. realtors, was along when Holloway first came to look at his future homesite, which was formerly part of the 84-acre estate of the late Paul Griffin, a retired Army officer.

"The developers have treated the tract with care," said Schwartzman. "They stipulated that no tees be removed and that a house must be a minimum of 2,800 square feet and cost minimum $200,000." She added that one of the newly begun houses, by builder Jery Ginsburg, will probably cost about $500,000.