Real Subdivision Costs and Returns

Trevor Provant, speaking on September 21, 2026, provides detailed financial and operational insights into three subdivision development projects currently underway in Texas, primarily in the Waller County and surrounding areas northwest of Houston. He emphasizes the growth corridor created by SpaceX's presence in Grimes County and expanding development between Interstate 45 and State Highway 290.

The primary focus is the Reed's Pine subdivision, a 52-acre project purchased for $1.2 million ($27,000 per acre) that was undervalued due to lack of road access. With approximately $900,000 in additional improvements, the total investment reaches just over $2 million. Major costs include $700,000 for road construction at $180-200 per linear foot, $156,000 for power infrastructure split between above-ground and below-ground installation, and $157,000 for site amenities. The entrance alone costs over $50,000. The project will yield 26 lots ranging from 1.5 to 3 acres, with anticipated total value of $5.7-6.2 million, representing a $2 million profit despite market uncertainties. Provant is a minority partner with excellent cash-on-cash returns and plans to build 2-3 spec homes on select lots.

For the spec home strategy, Provant describes a financing model using hard money loans and subsequent bank construction financing. Spec homes on $200,000-300,000 lots will cost approximately $50,000-60,000 out of pocket to acquire from the partnership and develop with permitting, yielding $150,000-200,000 net profit per home after $900,000-1.1 million sales prices, accounting for 20-25% profit margins.

Beyond Reed's Pine, Provant discusses three larger acreage-lot subdivisions (66 acres, 34 acres, and 200 acres) that represent a more complex financing structure using one-year owner financing combined with long-term debt financing. These projects total approximately $28.7 million in combined purchase and improvement costs with conservative projected valuations near $50+ million. He emphasizes these are 7-8 year projects designed to build substantial equity across multiple stakeholders and partners rather than concentrate risk in a single entity.

Provant discusses infrastructure requirements including road construction costs, water and power distribution, and mentions public improvement districts (PIDs) and municipal utility districts (MUDs) as financing mechanisms where bonds backed by municipalities can fund improvements upfront rather than through pay-as-you-go models. He notes that current market conditions favor creative deal structures including owner financing and joint ventures, which he actively pursues rather than attempting traditional acquisition methods.