Thats a lot of work that a company would have to do and they would want their money back on the development costs.

Hey All, one important aspect to consider about real estate developing paper losses.

I'm trying to understand how they collect data so as to develop the best comping practices.

First is the macroeconomics here are absolutely blowing up here - population growth, job growth, and SO MANY companies moving/developing here.

Once you start hiring employees, it's smart to develop it out so you can train them properly and so there is a documented reference guide.

Honestly, I never fully understood what they meant—until recently.I’ve been diving into some larger-scale real estate projects, specifically in commercial properties and multifamily development.

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.

Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

. $295 in the winter if the heat is running the blower motor(s) all day could be justified for a larger 6-unit building but I'd have to see the historical elec charges to know.

I had to develop tenacity and perseverance when starting my business back in the mid 1990's.