So to safeguard interests I helped facilitate a buyout of the project.

You still have the money but the lender is holding it as security.They do this more with non-recourse loans as they want to protect the property with a bunch of safeguards because your individual bet worth is useless to them when they cannot attach to it.

Using a true private investor or lender does require you to take a very prudent path, the less they know about financing, the greater the burden on you to safeguard their money.

I would recommend working with a licensed reputable mortgage broker to avoid usury and safeguard your self from the regulators.Always get an independent appraisal and read it! 

However the vast majority of homes being sold are being sold by a small number of highly successful agents, who have to act with the highest amount of ethics to safeguard their multimillion dollar businesses.  

I've used Safeguard for 401(k), multiple IRA LLC, and had clients use them as well.ira123.com

That's one way to safe-guard yourself and your investments... 

Ethan - yes we are doing some of our work with a self directed IRA - we did the checkbook IRA through safeguard financial.

The other thing no one is mentioning is that there are some safeguards built into getting loans that you dont get going it alone.

Take something you are familiar with, incorporate the essentials and safeguards necessary to protect yourself and always have a rider to provide for issues that arise.