Building a multifamily from scratch

[Brian Jung]

Hi Everyone, 

I am a newbie investor and has never done renovation on my own place, let alone building a multifamily from the scratch. Recently, a friend of a friend approached me and offered if I would go in as 50:50 partner in a deal that he is currently working on. 

The deal is in Kelowna, BC

Land was appraised at $950,000. They paid the bonding (~$150,000) to the city and already have the development plan approved. They are valuing the entire deal at 1.2M and asking 600k to go in as a 50:50 partner. 

Currently the property is owned by a numbered company. This is my first time engaging such a big deal and a bit nerve racking. Anyhow, What would be the due deligence process from my end ?

Things that I could think about are...

1. Make sure the company does not owe any taxes, any bad debts or in any kind of legal problems since I will be the 50% shareholder of this company

2. Make sure the Development plan is approved by the city. 

3. ????

If anyone has been in a deal like this before, what should be cautious about? Any advise from a senior investor would be appreciated.