The following is not legal advice.Having read numerous horror stories here on BP about failed projects and lost money due to less-than-honorable contractors, I feel compelled to try to provide some guidance to those who are interested in avoiding some of the pitfalls.1.Either learn the contractor licensing laws and mechanics’ lien laws of the state in which your project is located, and how to protect yourself, or retain and be willing to pay an attorney who is knowledgeable about construction laws in that state.

My office is in Grand Rapids, but i've been locking up numerous properties for my investor clients in Kalamazoo over the last six months.

I've read numerous ways ate acceptable.Personally serving and having them sign an acknowledgement.

There are numerous legal posts outlining the process, time lines etc.

The truth is that there are numerous ways to make money with real estate and nobody is an expert at all of them. 

Personally, I am still flipping and helping numerous other clients flip as well, just tightening up our UW.One thing I would ask yourself, and it's something I deal with clients all the time.

Save time, effort, taxes and numerous other resources and stick to renting a primary residence and use your credit/capital to buy an investment property.  

If your in NC like your profile says I don't think you have to look to far for a strong market.Things to be aware of:overpayingnot raising enough capex dollarsunderestimating capex budgetchoosing the wrong PM companynot getting right coverage on insurancetrying to rehab project from cash flowbuying in the hoodgoing of the OM proformathere are numerous ways to make a deal go sideways.

Search the BP for ADU appraisals to encounter numerous examples.

BiggerPockets offers numerous resources so definitely take advantage of it.