I would focus on saving enough money that if I had a deal go bad, then that money I saved was there to cover it. 

It’s the same thing except it’s done in the name of the IRA and all the money comes out of the IRA and returns go back into the IRA. 

Quote from @Carlyn Chism:I agree with Chris on a lender that might be a scam or make you may so much money interest because of the low credit score that you make $1.00 on the flip or no money.  

Typically this means they will take longer to close, may not have all the information for the companies they work with, and most hard money brokers get their money by taking an existing product and adding extra points to pay their fee.What is your investor success rate?

I've never had to use hard money before, so I am not sure what type of conditions are reasonable.

I suggest you enter private money goldmine in search botton at top right of the screen and read the previous posts....here is one that gives good perspective as well as a link to legitimate private lenders.http://www.biggerpockets.com/forums/92/topics/1488...

How do you become a broker for hard money lending? 

Buy the house and loan her the money. 

Liquidity is important if this is money you plan to put to work in the near term. 

You need a firm estimate for the remainder of the work as your funds are limited (like most people who don't have an endless amount of money).