Structural issues or environmental problems might be a bit hard to predict.

The best commercial property I ever bought had a Phase II environmental study presented with it disclosing the underground storage tanks and after researching it I found it was able to be registered for superfund payouts and the epa authority involved would be very unlikely to require cleanup in this instance.

Note: current politics and environmental factors (COVID, unemployment), make the gamble more risky today than last year.

@Nik Moushon  in our area here in the north west you have two major issues.You have commercial timber lands ( huge HUGE areas designated as such as big as many states on the east coast) these lands are protected for timber production. in Oregon you need 160 acres minimum lot size for a single home in many of these timber reserve loans.then you have prime low land farm land.. and those are even tougher to try to develop.. no matter that they are not near as valuable as farm land.. but its the farm bureaus protecting their turf.Then you get to CA and you need to do full blown EIR's  ( environmental impact reports) these can cost 200k to 1 mil up front with no assurance your project will be approved..its a tough game out here in the west. 

Review and approval of the documentation concerning the property; Completion of satisfactory physical and environmental inspections of the Property; including suite inspections.Completion of satisfactory due diligence search and examinations;Satisfactory review of the title of the Property;Satisfactory first mortgage financing being arranged for the purchase of the Property;Satisfactory second mortgage being provided by the Vendor for the purchase of the Property;7.

Proper due diligence includes an Asbestos Survey, Lead (paint and ceramic tile) Survey, Property Condition Assessment (ASTM E2018 - I helped write it), and for many properties, a Phase I Environmental Site Assessment.

Or you hire an environmental firm to do the job - they will seal the area while working and check air samples afterward, and they handle all disposal too.

And, here I thought those on the left coast were suppose to be more environmentally astute ;-) ... maybe not as esoteric as one might believe.

., environmental are not covered under your policy, earthquakes, floods, drug labs.A land trust does not offer asset protection but it does provide "due on sale" protection for transfers into LLCs.

Just be cautious.Items a lender may ask for include the following: Your business plan with highlights about the market and need for your project, Proforma showing your land cost and construction costs with your projected income, ALTA/ACSM Title Survey, Title Committment, Phase One Environmental Site Assessment, Geotechnical Report and Construction Plans.