In those instances we may not bother calling in our inspector or an engineer unless we see cues of serious structural or environmental issues.I find the cost of an inspection ($500 - $2500 pending the property) to be a fiscally effective use of my time and our funds.

Certainly the borrower will need to pay for an appraisal and maybe also pay for a Phase I environmental report and maybe even market studies.The borrower may need to pay points at closing and other closing expenses as well.I hope this helps clarify the amount you will have to contribute if you pursue a commercial property.

It would be helpful though to have a concentration of (liberal or conservative) socially and environmentally responsible investors and buyers for the success of this type of project.

- IRS tax liens (mentioned), Environmental issues, Sewage issues.- Also, look at history of property (if it has been purchased in a previous tax sale, there is probably something very wrong with it) (Also if you have time, look into the owners)- Also be sure to set macro-economic criteria.- Land Type/Classification. - Land Zoning laws in that area.

Just to get it to the point of submitting for approvals requires purchasing the land, and having large sums of money be paid out for engineering, environmental reports, soils testing, etc., without any guarantee it will be approved.

Just think of how much liability can be created if all the properties are owned by one entity and there was a catastrophic environmental problem!

For instance: Title lien, First mortgage (or other), HOA, Mechanics lien, Gov’t lien, IRS lien, Environmental lien, utility lien, code enforcement lien, child support lien

Also be sure to get an inspection and a Pase 1 environmental. 

Any issues with the property, i.e. environmental, approvals contingency, lease review, etc.?

Your permits, environmental, zoning, other legal documents will be asked during the funding process.A bridge loan would allow you to do this with interest only payments during the terms period and then before/once the term is over you'll need to refinance the bridge financing to pay off the bridge loan.Bridge seems the way to go.