The Risk Of Rolling Boulders
Welcome to the Real Estate Espresso Podcast or morning shot of what’s new in the world of real estate investing. I’m your host, Viktor Menasce.
Today’s show is a deep dive into a due diligence item that we don’t often think about. I’m going to read a few extracts from an engineering letter we received as part of an information package on a property.
The letter summarizes the results of an engineering report called a rock fall hazard evaluation for a project. The letter says prior to the start of a field investigation, a search of available literature and maps was performed. The geological literature and maps relevant to the subject site were reviewed, with an emphasis on information pertaining to known rock fall sources and past history of rock falls at or near the site.
The report details the ways to evaluate rock fall probability and offers solutions to mitigate this risk. Retaining walls, for instance, can cost more than a thousand dollars a linear foot, depending on the height. And you can end up spending hundreds of thousands or perhaps even millions if you have a large enough scale site with vast unstable structures.
Creating large setbacks obviously devalues your land and in some cases may simply make the property unbuildable. Meanwhile, stabilizing the structure maybe by pouring concrete or drilling dowels could also result in costly solutions.
A case study involves a residential subdivision in Utah, which has the increased risk of earthquake activity destabilizing the large boulders that sit atop of granular and silty material. Extra costs may accrue due to enforcing safety measures such as a three-stage retaining wall.
Rolling boulders can pose considerable risk if not adequately addressed. This potential pitfall strengthens my resolve to adjust our due diligence process. As you consider this, have a great rest of your day! Go make some great things happen and I’ll talk to you again tomorrow!
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