I've seen folks say things to me like, we spent 400k to build and then the house was appraised at 550k upon completion.

What would be a reason to use hard money for a purchase when you know the property would not appraise enough to pull all your investment out

I'd be interested in talking. my info is in my signature I'll message you to connect. we are looking for 85% LTC lenders for ground up triplex deals for three investors in Columbus Ohio. we are LPs in the deal just to qualify them and we have ground up experience as well as general contractor license. all construction sets, plans, etc. all of the entitlements we take care of so should be all set. totally vertically integrated and all the same plan. all urban infill lots close to downtown easy to appraise. 

When you build from the ground up in todays market you are paying top dollar for materials, builder costs, land lots, rates, etc.Log cabins can be tough because most appraisers will only use other log cabins on an appraisal to support value.

I'd also highly recommend getting an appraisal or at least having your real estate agent provide a BPO prior to negotiating with any "investors". 

If more than 1 year you should be able to go off the new appraised value and cashout refi or rate/term if wanting a lower rate, 30 year terms should be readily available so don't have to worry about short terms.

Just be ready for the lender to order a foundation inspection report and appraisal - both you pay out of pocket. 

We lost earnest money, appraisal fees, money spent on the architect, money spent on my attorney, and much worse, the loss of profit on this deal.  

Firstly, the agent failed to review the inspection report or the appraisal with me, and was absent during all inspections.

However, two things that I observed - 1) the turnkey company I am working with has shared a proforma that has ~10% to 15% premium price compared to similar properties sold in the area. 2) they have a contract in place before the inspection and appraisal.