After attending a seminar on permanent wood foundations back in 2010, I was turned into a big fan of wood foundations. But I was also convinced that most wood foundations are built improperly.
I was already suspicious about wood foundations before attending that seminar because the majority of wood foundations that I inspect have water problems. Another home inspector who attended the seminar with me said it best: "I was worried about wood foundations before I took this class... but now I'm terrified."

HOW TO SPOT A WOOD FOUNDATION
How do you know if the home you're purchasing has a wood foundation? The most reliable method is to fully read the homeowner's disclosure statement. If you're in Minnesota, there's a line on the form that asks what type of foundation is present.

Of course, not everyone fills these forms out, and not everyone fills them out properly. As a home inspector, I need to describe the type of foundation as part of my report, and I don't rely on the information on that form. I look for the foundation type on the exterior, and there's almost always some exposed concrete on the exterior of a home when it's a traditional poured concrete or concrete block foundation, but not so with a wood foundation. With these homes, all you can ever see is wood, siding, or some type of covering. The photos below show examples of what you'd see at the exterior if the home has a wood foundation.




Because wood foundations aren't common, it would be easy for a home inspector to miss the presence of a wood foundation if they're not actively thinking about the type of foundation that's present. Everything else about a home with a wood foundation is pretty much indistinguishable from any other home unless the basement is unfinished.
WATER MANAGEMENT
This class really reinforced what I already knew about wood foundations: water management is critical. If poor water management is a problem with traditional concrete foundations, it's catastrophic with wood foundations. For a wood foundation to perform properly, it needs to stay dry or be given the chance to dry out if it gets wet.
When I find signs of moisture intrusion at a wood foundation, it means the water management system has failed, and the repairs will probably be expensive. Here are a few water management issues that would be red flags at a wood foundation.
Lack of gutters. I've said it many times before, gutters are a critical piece of water management around a home. They're helpful at every home, but they're especially important at homes with permanent wood foundations. Don't ask me why, but the owners of homes with wood foundations seem to think they don't need gutters. It's mindblowing how many homes we inspect with wood foundations that don't have gutters or have an incomplete system. Lack of gutters at a home with a permanent wood foundation is a huge red flag.