Great topic — ground-up projects can produce strong margins, but execution risk is where many investors get caught off guard.From the builder/developer side, the biggest challenges we consistently see are:1️⃣ Site Work UnknownsFill, compaction, drainage, and soil conditions can shift budgets quickly — especially in markets where lot conditions vary significantly.2️⃣ Utilities & Impact FeesWater/sewer access, well/septic requirements, and local impact fees are often underestimated during underwriting.3️⃣ Environmental FactorsProtected species, wetlands, and flood elevation requirements can affect both timelines and build costs.4️⃣ Permit TimelinesApproval periods — particularly when civil or environmental reviews are involved — can extend holding costs beyond initial projections.5️⃣ Builder Execution CapacityProject success often comes down to the operator’s systems, trade relationships, and cycle times — not just the numbers on paper.Because of these hurdles, we’re seeing more investors lean toward ready-to-build projects — where feasibility, plans, and permitting are already in progress or completed — as a way to reduce entitlement risk and shorten timelines.Ground-up can be extremely rewarding, but the upfront diligence and execution planning are what ultimately determine outcomes.Always happy to compare notes with other investors and builders working through similar projects.

I’ve seen opportunity here, but it also comes with challenges that don’t always show up in the numbers.

What are some of the day to day challenges of running the operation that an outsider might overlook? 

Most of them just want out.The challenge is pulling the data consistently and actually reaching the owners.

These are the small practical challenges that I find making prop mgmt really difficult for us to operationalize.

I love discussing local opportunities and will be real with you when it comes to the challenges that out of area investors face.

So I have property which is high luxury remodeled and it’s under contract. The owner got into mismanagement of funds and it lead to foreclosure. One of the spouse is very emotionally attached and even tried to not sig...

Do I have to explore out of the area or just face the market that I already know for a long time since I live here? 

If it had got past those hurdles, it would have faced legal challenges.  

With yields drifting lower, mortgage‑backed securities are up a few ticks on the day, offering a bit of near‑term relief to rate sheets after last week’s volatility.The supportive macro backdrop is reinforcing investor demand for duration, which has kept a lid on yield increases even in the face of hotter data.