I have a property on the barrier island that I do not want to list on MLS but I am interested in connecting with realtors or investors who typically sell or buy pocket listings and may be interested in this property.

And it can work really well for you as long as you pay attention to the statute requirements.In order to defer all tax you are selling investment real estate and buying investment real estate of at least the same value you sold. 

He will be selling the project to buyers once completed and not interested in operating.How should I evaluate this deal from an investment point?

I think it would be better just to stay on good terms and let him know you will contact him when you are ready to sell.

Every hedge fund is always buying and selling assets.

Similar to what Patrick stated - most have ITINs and have seen a lot of loans like that and those are sold many times on secondary market. if not I know people who still originate I would say they are tougher to sell on secondary market but there are still buyersRe: jay comment - price of notes has doubled over past five years on many loans - especially defaulted or loans with some hair too them. 

Keep in mind that I am selling them as affordable fixer uppers and usually only address any health, safety, and functionality issues.

I’m ready to get this thing done, do open houses, and try to sell it.

It will make the loans more valuable if you ever decide to sell them and decreases the chances of default. 

Do you sell / buy real estate in Mexico personally?