The only major drawbacks is that most cities near NYC in NJ have high property taxes and if it's close to a bridge or tunnel it's also probably pricey. that being said rents are high in both of those areas.

What are the drawbacks?

The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.

The drawbacks vs. conventional mortgages are typically shorter amortization periods, balloons, and sometimes slightly higher rates. 

What are the drawbacks to not paying for the architectural specifications?

I work on the institutional side of these programs but am trying to help a friend get the lay of the land in Essex County, NJ and understand the drawbacks from a developer's perspective.

My only drawback is money, inexperience, and lack of a mentor, which brings me to the other reason of why I am here.So that is it for the most part.

There are benefits and drawbacks to all financing and investing methods.

I'd be interested in any drawbacks you see in a land contract scenario.

Biggest drawback is it is only a 5 year loan so going to have to figure out long term solution at that point.