The rules for building on or around waterfront are lengthy and expensive .

Short sales are a lengthy process so depending on how far along the original seller is in the process, it could be a long time for you as well. 

For example, my lady and I tried the to install the kitchen back-splash, great bonding experience but, not hardly our strong suit.It wasn't until I heard one particular podcast when the rhetorical question was posed, "where am I most valuable, in my business or making money for my business."

The bond market is in a bubble due to fed purchases, record debt in student loan,auto and credit cards, the imf says 15% of listed companies can't affordthe payments on their debt, and this year has seen 65% increase in corporate bankruptcy filings, tesla has never made a dime, amazon makes 0$ on merch sales, etc,etcShort term buy and flips are probably a lot less rissk now.

If it specifies bonded, licensed commercial contractors for XYZ type of job, then yes, you run the risk of not being able to collect if said contractor destroys your building.In your example, I would probably let it slide if i self managed, I would not however, let a property manager or tenants use anyone who was not insured, bonded, etc.

Your contract with them has no bearing in court unless they are licensed to begin with. you know they don’t own a company, have a license, have any insurance/bonds, why do you expect reliability and adherence to the contract?

Unless that property has ridiculous appreciation then your better buying government bonds.

I believe the best way to do it would be to track down the lien holder and see if they'd sell you the note, however then you'd have to go through the foreclosure process yourself which I believe is a lengthy and expensive route (i.e. lawyer fees, title fees, etc.)

Contractors License/Bond/Insurance/Workers Comp?

So land for commercial would even be ok, even though they are not that similar, but stocks, bonds, or funds are not considered 'like-kind'.