AMA - My Site Plan Approval Is About To Expire

Today's question come From Mark in North Carolina.

"Victor, I've listened since your early episodes on the Simplification Trap and Forcing Value in Apartments. I'm sitting on 3.5 acres entitled for 82 units, fully site-planned. Your episodes over the last 18 months about cap rate expansion and 'Building When Others Pause' really resonated.

My pro forma worked at 5.5% construction debt in 2021. Today I'm quoted at 8%+ and my constructino cost is still 20% above my previous estimates. If I wait for rates to drop, I risk losing my site plan approval window and my entitlement work goes stale. If I build now, I lock in high costs. What should I do?

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