From my understanding you cannot place a wholesale contract and have no funds to complete the transaction using only the buyers capital.is this accurate from your experience or is there anything missing?

Whatever happens with you, seller, and your earnest money dispute or any potential lawsuits over it are completely irrelevant to me.

I just completed a private lending deal where I borrowed at 10% on an investment property LOC and at 7.9% on a personal loan.

I would need to know more specs on the house but with material shortages It's difficult to say how much to budget. 80K-120K for full gut perhaps but unsure with lumber beings so expensive and shortages.I would plan 9 months of vacancy between the pain you will endure pulling permits & having your contractors show up everyday to complete the work & then final inspections to get a CO. 

A land trust primarily obscures ownership, but its role in your structure needs clarification.

I completely agree with your approach to private money lending.

You could easily get 75-80% LTC on the cabin build meaning you'd need about $200,000-$250,000 CASH, to complete the project.Take 200k out of the FL house, build, rent, refi & payoff the FL property again would be my best bet about going about it.

However, they wanted fast close at 10 days when I need 30-40 days to complete the survey.

You want to wait after the work is complete before you get an appraisal and do not do it until you are refinancing because most lenders will want it through the AMC and you will be out your money.

Its certainly not appropriate for 99% of the viewers on BP that are primarily interest in either rental property long term or fix and flip short term.