October’s investor update focused on Hewitt, Texas: a 194-lot residential project, the demand the team sees around it, and the remaining steps toward a planned November closing.
Andrew opened with the fund’s approach and capital structure. Wesley explained the work leading up to construction, and Brandon discussed the local market. The session closed with questions about plats, development and construction, absorption, and builder incentives.
What work happens before Traction calls capital?
The team’s approach is to bring the land, builder and financing together before funding horizontal construction. Wesley described working with landowners, engineers, municipalities and builder partners to define the project and the finished lots the builder needs.
The infrastructure work includes roads, water, sewer and preparation of the lots for home construction. The builder then buys the lots and takes responsibility for vertical construction and selling the homes.
Doing this preparation first is intended to reduce uncertainty. It does not eliminate construction, financing, buyer-performance or market risk. The specific contracts, remaining conditions and project budget matter.
Where did Hewitt stand on October 21?
Wesley reported that zoning was complete for 194 lots, while the team was advancing plats, builder terms and financing toward closing. The dates below are the targets discussed on the webinar, not confirmation that those milestones have subsequently occurred.
| Milestone | Reported status | Next step |
|---|---|---|
| Zoning | Wesley reported zoning approval for 194 lots. | Site-plan and plat work remained in progress. |
| Municipal review | Planning and Zoning and City Council dates were identified for November 3 and November 10. | Complete the remaining review and approval steps. |
| Builder agreement | The team was finalizing terms with John Houston; additional builder interest was discussed. | Finish and execute the definitive agreement. |
| Financing | Lender term sheets were expected following the webinar. | Finalize first-position financing and satisfy closing conditions. |
| Closing & construction | November 20 was the planned closing date, with January targeted for initial site work. | Complete closing, remaining permits and construction preparation. |
Wesley also described progress on the traffic study, flood study and grading plan. The planned sequence was closing, remaining permits and preparation for site work. Each step depends on the applicable approvals and closing conditions.
Why is the team focused on Hewitt and Waco?
The underwriting discussion centered on local employment investment and demonstrated builder activity. Brandon described investment across several industries around the site, rather than reliance on a single employer.
He also discussed established homebuilders operating nearby and the differences in their housing products. John Houston’s experience in the market was part of the team’s reasoning for pursuing that builder relationship.
Andrew emphasized evaluating demand at the local level. Statewide growth alone does not establish demand for a particular development. Builder interest, the intended home product, pricing and the pace of sales all belong in the project analysis.
When is committed capital called?
Andrew described calling capital as it is needed for a project, generally within about two weeks of an anticipated closing. A commitment and a funded investment are different stages of the process.
The discussion described limited remaining capacity for deployment before year-end. That was availability as of October 21; contact the team for current capacity and timing.
The webinar discussed a 12.5% annual preferred return and a 42-month target timeline. These are not guaranteed payments or a guaranteed redemption date. The governing documents determine accrual, fees, payment priority and distribution rights; investments remain exposed to loss.
Three investor questions from the discussion
What is a plat?
Wesley described a plat as the surveyed instrument showing the arrangement of lots. For Hewitt, he discussed separate plats for groups of lots and the municipal approval process still being completed.
What is the difference between development and construction?
The distinction in the discussion was the amount of work resolved before construction begins: what can be approved, what the infrastructure will cost, and who will buy the finished lots. A defined scope and contracts can reduce uncertainty, but construction still carries execution and cost risk.
How does absorption affect the business?
Absorption is the pace of sales. Wesley explained that builder sales expectations help shape quarterly lot-delivery schedules and contract negotiations. Andrew connected the discussion to mortgage rates and builder incentives, including rate buydowns that can affect a buyer’s monthly payment.
Sources and context
This recap is based on the October 21, 2026 webinar and its automatic Zoom transcript. Project status and plans are attributed to that dated discussion. Subsequent milestones, current availability and final contractual terms should be confirmed with the team.
- Download the October 21 transcript (automatic transcription; errors may remain).
- September briefing: Builder commitments before capital.
- Traction Capital research: Why builders need finished lots.
The recording also includes an industry-news discussion. This recap does not independently verify the transaction figures or third-party market statistics mentioned there. Governing offering documents control investment terms. Wesley Greene’s and Sage Communities’ operating experience is separate from Traction Capital’s investment performance.