Miscalculated Risk

@brrr_beth

Equity 215·Posted 1w ago

A recent project's holding costs exceeded projections due to unforeseen permit delays, cutting into projected net. Thorough analysis of local trends and contnigency planning are crucial.

1 comment

@txrei_pro·1w ago

Agreed, thorough analysis is key. What were the original expense ratios and pro-forma rent bumps assumed in the underwriting, and how did they compare to actuals? Were there any mitigants in place, such as a cost contingency reserve, to offset the permit delays?

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