This could include computer delays, the inability to reach the site, creating a late filing, and subsequent penalties.

That being said, anything can happen, but if you run your numbers accordingly, make sure that your contractor is trusted and do all the other stuff you'll be a little more protected than the next person flipping that does not do this type of calculation. 

However, a few things you could do: You could talk with them & learn more of their story to figure out why their credit score is low as well as the type of people they are.

Your income needs to be 100x it and you need to invest 10% of your net(so less than $5mil) annually in structured product type investing incl RE, let it season for 3-5 years, re-invest the first bit of profits and by year 8-10 you should be comfortable.$500k annual income is alot for your average folk, but it's not "retire me" income at all.

I have lots of experience in all types of single-family investing, small partnerships in multifamily and commercial, and a vast knowledge of construction.

What made you interested in investing in this type of deal?

What types of contracts would you need?

What type of strategies are you exploring?

Has not been easy to get a call back or on the phone.I just got an idea typing this.

It probably be best as a friends-and-family type loan, but I don’t have anyone around me that is an appropriate lender.If I have to, I can put the funds in myself, but its inconvenient, and would come from investments that would need to be sold, taxed, etc.