This cap rate is not completely out of the realm of what things are trading at.  

Development has different risk profiles and longer timelines BUT when you have the right team working together and you build a pipeline of projects it can be very financially rewarding without trading your time for dollars.

From there it's running a schedule and taking responsibility for my actions.

By definition, these type of loans are not the same quality as what is traded on wall street. 

Both offer unique advantages, but understanding the trade-offs is crucial for making the right decision.

Is there any legal action one can take or is it just a lost cause?

I don't see any sense of urgency from you, so no one adjudicating this case would either, or end up taking any action!

To wait until, the actions of others, made things look "cheap". 

Additional Info —Key Details:Location: Outside Santa Fe, NMProperty Size: 20 acres (valued at $80,000)Project: Two new STR unitsExisting Experience: Family has two fully-occupied LTRs nearby, generating $2,000/monthConstruction Approach: Self-contracted with licensed trades for electrical/plumbingCost Assumption: $80,000 per unit, plus ~20% for inflation (based on 5–8-year-old build costs)Financing: Using land equity as down payment on construction loan (expecting closing costs to be major expense)Request: Looking for feedback, potential pitfalls, and general guidance

This way the lender is covered and only lending on the value that is legally zoned and compliant (in case the city took action against the non-conforming unit).