By: Joshua Finley

The U.S. real estate market’s recovery is opening new doors for affordable housing and subdivision development. Growing demand for accessible, family-friendly housing is leading developers to focus on these projects to help address shortages. The National Association of Home Builders (NAHB) reports a growth in affordable housing starts, with 2024 projections showing increased investment in lower-income housing due to public and private sector support. 

Stable employment and easing inflation support demand for affordable homes, while certain metro areas are introducing incentives to fast-track approvals for these projects. This shift towards single-family subdivisions offers lasting value for developers and communities alike, with a stronger emphasis on creating high-quality, affordable housing. 

Dallas-Fort Worth-based real estate investor, land development advisor, renowned public speaker, and founder of Landvest Capital Charles Covey has worked in real estate for decades. With a track record of success, Covey is perfectly positioned to leverage a rapidly recovering real estate and development market.  

More Than a Sum of Parts

Charles Covey describes himself as more than a real estate developer. He focuses on affordable housing and subdivision projects. He also manages a portfolio of real estate investments in high-growth markets like the Texas Triangle and oversees and advises an extensive portfolio of companies.  

For Covey, he works to balance his roles as an investor in multiple ventures, a developer, and a business owner across various industries. 

He says, “Achieving a balance between investment and operational efficiency in real estate isn’t just about resources; it’s about experience. Starting from the ground up, as I did, framing houses in my youth teaches you about every stage of the process, from labor to leadership. 

A Passion for Execution

Charles Covey shares insights from his construction and real estate development journey, emphasizing how practical experience has shaped his understanding of the industry. He highlights the excitement of seeing projects take shape and the satisfaction that comes from hard work. 

“In my experience, nothing matches the energy of a job site where a team transforms raw materials into something extraordinary. Whether a single house or a sixty-story skyscraper, watching a building take shape from nothing fuels my passion and reminds me of my purpose. It’s about the hard work and dedication required to bring these projects to life, and that drive keeps me coming back day after day,” says Covey.

Charles Covey emphasizes that his extensive experience in construction and real estate development has been crucial in guiding his business decisions. Over the past 25 years, he has faced numerous challenges and learned from both his own mistakes and those of others. This knowledge allows him to navigate the complexities of development and investment confidently. 

“I’ve been involved in some incredible projects, combined worth over five billion dollars. As the value increases, so do the complexities and pressures to get it right the first time. Progressing from building homes to constructing billion-dollar projects always presents new challenges,” says Covey. 

Covey is dedicated to addressing the housing affordability crisis by collaborating with brokers, builders, and municipalities to develop projects that deliver strong returns for investors while benefiting communities. He focuses on creating sustainable environments that meet current needs and prepare for future challenges. Additionally, he acquires and grows blue-collar businesses in expanding markets, prioritizing products and services that are less vulnerable to disruption by AI and large corporations.

Data-Driven Success

Charles Covey employs a straightforward investment decision-making strategy, aiming for an 80% certainty level by gathering sufficient data. While he acknowledges that a more accurate decision could be achieved, factoring in more extensive investment data, he recognizes that the time required would significantly slow down the process.  

By applying the 80/20 rule, he accepts that while there is still a 20% chance of error, this approach allows for rapid evaluation of investment opportunities, ensuring that most projects will succeed even if a few do not provide a level of return that is in line with top-end projections.  

“My track record of underperforming investments is roughly two out of 10. That doesn’t mean a failure of the strategy or that you take a bath on the investment; it simply means that although the investment is profitable, it may not have cleared the high bar for exceptional returns. When 20% of investments are just ‘good’ rather than ‘great,’ it’s still a pretty acceptable outcome. There are many known unknowables in real estate development and investment – and in a market that evolves quickly and is subject to disruption, 80/20 is proof you’re on the right track.” 

According to Covey, the decision-making process should be data-driven, minimizing the influence of ego and emotion. In his earlier years, Covey often made choices based on personal feelings, leading to errors that undermined accuracy. He emphasizes the importance of focusing on objectives and using solid data to guide decisions. If a choice does not align with the established goals, it’s better to walk away, reinforcing the significance of an objective approach in achieving the desired outcomes.

“There’s not a recognized investor in the world who is right 100% of the time – even the greats like Warren Buffett make mistakes. Pressures on consumers from high interest rates, supply line disruptions, strikes, changing consumer preferences, crime levels, and gentrification all have to be factored in, and that’s just the tip of the iceberg. In real estate development, volatility is a given. Even historical data is of limited use due to market evolution – but the more data you have, the clearer the crystal ball will be,” says Covey.

Charles Covey continues to push the boundaries of what’s possible in real estate and entrepreneurship, always guided by a commitment to innovation, community, and impact. To learn more about Charles Covey’s unique approach to real estate investment, visit his LinkedIn page or website.

Published by: Holy Minoza