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>But then I don't understand why so much capital would be required just for getting permits.

There are lots of permits that only become available much later in the process. For example, an occupancy permit is only granted once the building is in a habitable state.

There are always permit delays of some kind or another because no matter how much research and planning you do, there are things that are simply unknown or that have to be changed (and thus re-permitted) at the proverbial last minute.



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