Bureaucracy - permits, fees, inspections, water meters, sewage tap fees, environmental impact fees.3. 

We are ideally looking for something environmentally friendly.  

I know some investors that run from anything having to do with current or former environmental issues while I know others that find a way to deal with it.

Luckily there was no mold after an environmental crew cordoned the area off and checked.

Start with the end value of the buildings or lots and work backwards.Next check with the city or county to determine if you can do what you want to do and what is required for all zoning approvals and the time frame,Ask if you have to install curb, gutter, sidewalks, street signs, street lighting or any other special requirements.Are there any specific street design requirements, DOT requirements, permits or traffic studies.DWQ, Army Corp or any other environmental requirements or permits.General permit fees, proffers, water/sewer tap fees and the process of setting taps and connecting.

With big environmental unknowns, this investment has above average potential for needing a cash infusion.

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.