Since downtown development land goes for $30 million/acre, $100k imposed by the progressive city government for a 40 story building permit is a minor annoyance.

Are there any particular things to check when evaluating such a deal?

Any progress?

Other KPIs and considerations you should evaluate when talking to any lender who offered private placement of loans/notes are historic default rate, how quickly they can place your funds (do you get preference over their income funds, for example), average interest rate - borrower note rate and what is passed through to you, are loans serviced by a 3rd party servicer or in house.

Does anyone know how insurance companies evaluate these properties and whether or not real value can be realized for insurance for renovation? 

How do I evaluate returns at various price points and under complex financing structures?

You really need to know your numbers well and build in some good cushion.Tools I use to evaluate rentals and loans.  1.

It's a progression but the key is to take the smallest of incremental action each day and it will sum up to something incredible in years.

Still in progress!

Thats how you evaluate .