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.

Always make sure you keep your buildings up to code so if something like this happens in your building you can have a clear conscious and everyone won't be screaming landlords fault.

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.

Nobody wants to read a 3-page stream-of consciousness with no structure.Like Jon, I got through part of your post and I think that's all I needed to see.

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

I currently own 2 rentals and am always conscious of the scalability. 

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