High-Velocity Model
Short Holds, High Returns
Rapid Capital Velocity
By exiting at the land stage, each project targets a short ~12–16 month hold period, dramatically faster than traditional development. This quick turnaround (horizontal development only) allows capital to be recycled quickly into new deals.
Exceptional IRRs
HLP underwrites for >100% project-level IRR (2–3× equity multiple) in each 12–16 month cycle. These triple-digit returns are achievable by adding value through entitlements and flipping the land without taking on construction risk.
De-Risked Exits
Every acquisition is pre-vetted with multiple exit buyers (at least two committed takers lined up per deal). This ensures that once the land is entitled (shovel-ready), HLP can exit quickly – minimizing market risk and holding costs.
Value Creation Process
Horizontal Land Strategy
Acquire raw land in high-growth markets, entitle and plat it for single-family homes, then exit before vertical construction by selling shovel-ready “paper lots” to institutional housing buyers. This model capitalizes on the unmet demand for build-ready residential land.
- Acquire raw land in high-growth markets.
- Entitle and plat it for single-family homes.
- Exit with Institutional Buyers
Markets Focus
Entry-Level Housing In Growth Areas
Entry-Level Housing Only
HLP focuses on detached single-family lots in the ~$300K–$500K price tier. This is the deepest demand segment, ensuring rapid lot absorption.
High-Growth Regions
HLP targets Tier-1 & Tier-2 metros, especially Texas and Sunbelt markets. These areas offer strong population growth and housing demand.
Robust Land Demand
Builders and rental operators are rapidly expanding in these regions. Entry-level subdivisions see brisk take-up by national investors.
Platform Structure & Alignment
Flexible Site Planning
While entry-level housing lots are the core focus, HLP can incorporate carveouts on larger sites to add value or meet community needs. These are handled via partnerships or separate exit strategies so as not to derail the main timeline.
Retail & Hospitality Pads
HLP also identifies outparcel opportunities on its land deals – for example, carving out retail or hospitality pad sites along main road frontages. These pads (for a future store, daycare, hotel, etc.) can be sold or JV’d separately, adding incremental profit and enhancing the overall project’s appeal (without slowing down the core subdivision development).
Affordable/Workforce Housing
Portions of a project can be carved out for affordable housing (LIHTC programs), workforce housing, or even senior/special-needs units. By partnering with specialized developers or housing agencies, HLP can enable these uses on-site, which often helps with entitlements and fulfills civic goals, all while keeping the primary for-sale lots on track.
Core Focus Maintained
Importantly, any carve-outs are structured so they do not slow the core horizontal development. The primary exit – selling entitled home lots – remains the priority timeline. Carve-outs are bonus value-adds that run in parallel or get spun off, ensuring the fast 12-month project cycle is preserved while still capturing upside from additional uses.