Builder Signs & Posts Deposit
A national homebuilder executes a purchase agreement committing to buy the finished lots at a fixed price and posts significant earnest money. If the builder exits, the deposit is forfeited.
Private Offering Land Development
Builder-committed.
Deposit-backed. 12.5% annually.
20+Years Operating
28Subdivisions Delivered
12.5%Fixed Annual Return
1,399+Total Lots Delivered
The Short Version
How the structure protects your capital.
- A fixed 12.5% annual return over a 42-month term, with your principal returned and interest paid before the operator earns a dollar of profit.
- Builder-committed demand: a national homebuilder signs a fixed-price purchase agreement and posts significant earnest money that is forfeited if it walks.
- Your capital deploys last — only after the buyer's deposit is posted and the bank locks a first-lien on the land, so money goes to work only once the deal is de-risked.
- A structural shortage, not a bet on the cycle: the US is short 3.7–4.5M homes, 64% of builders can't source enough finished lots, and the market has no dominant player.
Built to protect.
Your capital deploys last.
Bank Secures Senior Debt
Construction financing is locked against the land asset before any development begins. The bank holds a first lien on the land.
Your Capital Deploys
Development capital is called only once the buyer and the bank are both committed to the deal. Your money goes to work only when the project does.
Fund I is now open
Traction Capital Land Development Fund targets a fixed 12.5% annual return over a 42-month term. Your position sits above all developer profit: principal returned and interest paid before the operator earns anything.
When the operator invests $500K of his own capital, the incentives are aligned. $5M fund size. $100K minimum. Accredited investors only.
The buyer is locked in from day one.
Over 20 years and 28 completed subdivisions, builders have made Sage an extension of their own land acquisition teams, sharing forward lot needs with an operator they've already vetted across dozens of transactions.
Conventional Model
Find LandAcquireEntitleBuildSearch for Buyer
Sage Model
Builder tells Sage what they needSage finds itContract signed + deposit postedCapital deploysLots delivered to buyer
Builders need finished lots
National and regional builders need finished, permit-ready lots faster than the market can deliver them. 64% of builders report they can't get enough lots.
Sage delivers them
Sage takes raw land through entitlement and infrastructure, then sells the finished lots to builders under signed contracts. Both for-sale and build-to-rent builders.
12.5% fixed annual return
The fund supplies the development capital over the life of the deal. Your return is fixed at 12.5% annually, paid before the operator earns any profit.
Your return: simple math.
From your $100,000 investment$143,7501.44x Return Multiple
You Invest$100,000
Annual Return12.5% ($12,500/yr)
Fund Term42 months
Total You Receive$143,750
Annual Return, Compared
S&P 5007%
Private Lending8-12%
This Fund12.5%
Fixed 12.5% annual return over a 42-month term, builder-backed and paid before the operator earns any profit.
Where You Sit in the Capital Stack
Builder's DepositEarnest money posted at contract execution.
Your Investment12.5% annual return. Principal returned + interest paid before the developer earns anything.
Your PositionBank LoanFirst lien against the land. Gets paid first from lot sales.
Three high-growth markets.
North Carolina
- #1 in domestic net migration
- 764,000 unit housing gap through 2029
Central TX / DFW
- #2 build-to-rent market nationally
- 8.34M DFW metro population
Upstate South Carolina
- Natural expansion along I-85 from NC
- 15,000 unit housing shortage
3.7-4.5MHomes the U.S. is short
64%Builders can't get lots
$90-120BAnnual market size
<2%Largest player share
Fund terms.
Fund NameTraction Capital Land Development LLC
Investor RequirementAccredited investors only
Fund Size$5,000,000
Fund Life42 months from first funding
Minimum Investment$100,000
Minimum Close$1,000,000
Operator's Own Money$500,000
Your Return12.5% annually
You commit at signing, but capital is not called until each deal is ready to deploy. Your money goes to work only when the project does.
The lot shortage is structural.
"Your capital deploys only after the builder posts its deposit and the bank locks senior debt. Your position sits above all developer profit."
The United States is short 3.7 to 4.5 million homes. 64% of builders report they can't get enough finished lots. This isn't cyclical — it's a structural gap built over more than a decade of underbuilding that will not resolve quickly.
Before 2010, builders bought their own land. Capital was tied up for years, carrying costs eroded margins, and sourcing pulled time away from their core business: building homes. Today, builders primarily buy finished lots. Lennar sources 98% of lots via option contracts. D.R. Horton, 75%. The model isn't going back.
This created a $90 to $120 billion annual market with no dominant player — the largest pure-play developer holds less than 2% market share. Sage delivers finished, permit-ready lots to both for-sale and build-to-rent builders across three high-growth markets.
Common Questions
Questions investors ask about the land fund.
How does this fund protect my capital?
The structure is sequenced to de-risk before your money moves. First a national builder signs a fixed-price purchase agreement and posts significant earnest money; then the bank locks senior construction debt with a first lien on the land; only then is your development capital called. Your position also sits above all developer profit in the waterfall.
What does the 12.5% return represent?
The fund targets a fixed 12.5% annual return over a 42-month term. Your principal is returned and your interest is paid before the operator earns any profit, so the operator is paid last rather than first.
What happens if the homebuilder backs out?
The builder posts significant earnest money when it signs the purchase agreement. If it exits, that deposit is forfeited, which both compensates the project and screens for builders who are genuinely committed before any capital is deployed.
Why is there demand for finished lots?
The US is short 3.7 to 4.5 million homes and 64% of builders report they can't source enough finished lots. Builders have shifted to buying lots rather than owning land — Lennar options 98% of its lots and D.R. Horton roughly 75% — creating a $90–120B annual market with no dominant player.
How is the operator aligned with investors?
The operator co-invests $500K of personal capital into the fund and is paid only after investors receive their principal and 12.5% interest. The fund is $5M in size with a $100K minimum, so the operator's stake is a meaningful share of the total.
Who can invest in the fund?
Fund I is open to accredited investors only, with a $100K minimum commitment. Because the fund is capped at $5M, capacity is limited and the first step is a short call to confirm fit and reserve an allocation.
Is the 12.5% return guaranteed?
No. While the deposit-backed, capital-deploys-last structure is built to reduce risk, land development carries risk including loss of capital, and the fixed 12.5% is a target return rather than a guarantee.
Builder-committed. Deposit-backed. 12.5% annually.
The operator invests $500K alongside you. Accredited investors only. If you're ready to deploy into a builder-backed land fund with a fixed 12.5% annual return, let's talk.