Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

They value how it is to live in a home over the infrastructure and mechanical components.

., including floods, earthquakes, and severe storms.USDA Wildfire Risk to Communities – Offers detailed insights into wildfire risks for homes in specific regions, particularly useful for properties near forests or dry areas.Risk Factor – Analyzes flood, fire, and other climate-related threats for individual properties, giving you a risk score.Climate Check – Delivers property-specific climate risk ratings, covering heat, drought, fire, and floods.Do you consider environmental factors like flood and heat when investing?

I like to look at each component of the process on an itemized level first so that when I do work with a developer I can have my own reference for all the bundled costs associated with the build proposal. 

But, that being said, there are the numbers on paper and then there's the psychological component.... the human behavior component. 

It was published last year in the Journal of Environmental Economics and Management: https://www.sciencedirect.com/science/article/abs/pii/S00950...  

CA can and is the 500k to 2mil or more depending on the location  jurisdiction etc etc.. of course small plats are not that much.. but if you need to do an EIR ( Environmental Impact report) we were paying 200 to 300k for those back in the late 80s..

The supercomputer went live last month. Everything's been pushed thru a bit hush hush without much debate. Will this help our economy? 300 jobs isn't a lot to bring to Memphis for a $3-4 billion dollar project (it doe...

It allows a substantial portion of the asset's cost to be deducted in the first year of service.In 2023, the bonus depreciation rate is 80%.In 2024, it decreases to 60%.In 2025, the rate further reduces to 40%.COST SEGREGATION:Cost segregation involves dividing a property into its individual components for tax purposes.Some parts age faster, like carpets or paint.Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings.BASIS:Your basis is the initial price that you paid for your property, including any expenses or improvements.Knowing your basis is crucial for tax purposes, as it's used to evaluate depreciation & determine the capital gains or losses if/when your property sells.LAND VALUE:This is how much your land is worth without any buildings or improvements.Land doesn't get old like buildings, so you can't depreciate it.

The final 1031x regulations clarify that nearly all building components identified as five and seven-year property through a cost segregation study are, in fact, real property under Sec. 1031.