This is the most complicated piece because you are essentially the mortgage originator (which might run into licensing concerns depending on how many times you do this and your state), and you need to make sure the person who is buying is a good borrower.3) close with a title company or lawyer (state dependent) who knows how to deal with this type of transaction4) set up an account with a servicer to collect the money from the borrower (not required, but highly recommended from note buyers)5) collect payments

It seems that the cost of the money isn't that great of a concern if the numbers are making sense on the deal.

I would call the concerned parties and make sure you gather paper trail.. call the credit bureaus, they will give the advise you will need to get the flag removed

I am in a hurry to refinance a construction loan for a permanent fixed rate loan.

My concerns with selecting a servicer are the following: customer service, access to funds, access to education materials so I can learn how to stay away from prohibited transactions.

However, repairs or improvements must be permanently affixed and add value to the real property.Costs and Escrow AccountsThe costs of the renovations will be based on the plans and specifications for the work and on the Construction contract for all of the work requested by the borrower.

@Noah BaconI am not really concerned about either housing plan as both parties have been talking about building more affordable housing for decades but it boils down to a local level and the NIMBY groupsIt will be status quo like it has been since I can remember

And, government bureaucrats go along with it either out of sheer stupidity and ignorance or, far more concerning, out of ulterior motives. 

It's a very common concern that the other side of your transactions might try to take advantage of if they know you are doing a 1031 exchange. 

Is this a realistic concern?