It gives you the flexibility kind of like a credit card that allows you to borrow a certain limit and withdraw funds as needed.

Example - borrower uses loan to purchase a home in a B or C grade neighborhood for 380k, spends 50k rehabbing primary home, uses 200k to put an ADU in the back, appraisal comes back at 925k. 

Would the buyers/borrowers be purchasing with the intent of putting a mobile home on the property and making it their primary residence?

The other option for you would be to borrow against the equity in the property.  

I would suggest approaching the borrower on an accelerated pay out with an incentive.

Borrower has the 3% loan in place for the duration, and 14% investor can be paid off with increased rent in say 18 months.  

After it’s built borrow on full value and gift the parents back the land value?

Mortgages for LLCs with personal credit under 680 are tough and expensive, and under 640 are typically not really economically practical for the borrower. 

We paid $1.775 million for the notes, worked out a modification with the borrower, and received the first 5 monthly payments relatively on time.  

Please note than may liability personal or corporate of the original borrower remains after the title transfer.