As the situation became more complicated, I involved a lawyer and began mediation.

The settl4ement was private, but I bet it was at least $400k knowing the attorney's involved, maybe more. 

With clay you risk busting the tiles, or even dislodging one that has to then be excavated anyway.

One of the biggest risks I observe with flips and first time investors are instances where the project goes over budget or gets stuck in mud, can't sell and even worse the borrower doesn't have the credit profile to refinance out to a lower interest lending source if borrower is required to hold the property as a rental. 

The risks and delays are why many no longer pursue tax sale properties. 

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If there were no risk there would not be a reward of building wealth.

Using this delegated approach, you would then present these to your purchaser although there is a risk that they might reject a loan.

For you that's $7,500 a year, without taking any Risk.

The tradeoff for doing it all alone is higher risk and a much slower pace.