Seems this sub can file a unpaid balance mechanics lien if he wants to, but AL puts a time limit of 6 months for him to commence with the enforcement or perfecting of the lien by filing suit in court.

Keep in mind that this can be mitigated by asking the capital partner to escrow funds prior to the project commencing. 

If you receive the notice, make sure you get both partial (as you go) releases with draws and a Final release before/when making final payment, both from all subs you know of/can identify, and the gc.Some jurisdictions require you to file/record some type of Notice of Commencement so that subs/suppliers have the proper legal address for these notices.....if you fail to do this, their “clock” to start the timelines for their required notices/liens never starts.

For example, a well drafted contract will have a time of commencement, time of completion, a detailed description of the work to be provided, how the work is to be paid for, when the work is to be paid for, insurance requirements and who provides and pays for the insurance, indemnity agreements, and much, much more.

The sponsor acquired this asset with below market rents in place, and immediately commenced a strategic rent increase program.

When I am in a very dense area of city, Ive had building inspectors come down before work was even commenced. 

@Johnson H.If you've been collecting PPMs, the 3rd Edition is likely all you would need.I had never reviewed a PPM before when I commenced my research. 

The contingency fee you reference is known as the Due Diligence fee in NC, which is the fee you pay the seller to inspect a property upon contract commencement.

The PM should be collecting and passing on to you proof of Liability and Workers Comp. insurance for any contractor that steps onto the property before the work commences.

The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2018, the solo 401k contribution limit is $55,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)