J Darrin Gross
I'd like to ask you Shannon Robnett. What is the Biggest Risk?
Shannon Robnett
You know, in my business, the Biggest Risk is taking on the project and having things like prices increase on commodities. You know, we started a construction project. And our lumber costs estimate went from 3 million to 9 million. We locked in on the way up and caught it at about five and a half million, but it was still a two and a half million dollar Upswing on that. Those are the risks that we take as developers on brand new ground up. And so there's always that question that you have to ask and it comes back to your underwriting? Do you have the runway to absorb this? Can you get from here to there so that you're not, you know, your framing is in the first third of your job? If you've used all your contingency in the first third of the job? How are you going to finish the rest without additional cash? So are you properly capitalized? Have you underwritten correctly? Do you know that three years from now when you're built out on a 200 unit apartment complex that you've you're going to be able to sell those are the risks that we take that that sometimes keep me up at night?