I would not characterize this as a scam per se.. but it appears to me to be a failed investment model..

The loan does need to be secured by the property being improved if we are talking about a personal residence and personal itemized deductions on Schedule A.

These are just some of the additional items that will have a significant impact on carrier's rates, your premiums, and whether we start to see the insurance market soften anytime soon or not.

This could be an opportunity to add value by offering to help with clearing or relocating those items as part of any potential agreement.Why This Could Be a Good Move for YouYou see long-term potential in the property, especially with the large lot and development possibilities (even if those are years down the line).As the current tenants, you have the advantage of a direct relationship with the landlord and familiarity with the property, reducing competition and risk.This could be a chance to lock in a property that you might otherwise lose if it hit the open market, especially in today’s competitive environment.Challenges to ConsiderIf the landlord is emotionally tied to the property or reliant on rental income, they may be reluctant to sell.Financing could be tricky, especially with today’s interest rates and the gap between the current rent and what a conventional loan might cost.The development potential you’re interested in is likely a long-term play, which means the property could be financially tight in the short term, especially if you’re only breaking even or slightly negative on cash flow.Structuring a Potential DealTo make this feasible, you’ll likely need to explore creative financing options that align with both your financial capacity and the landlord’s goals.Seller Financing: Propose a deal where the landlord acts as the lender, allowing you to make monthly payments directly to them.

An engineering backed modeling study might be good for this type of property.

One important item to note about bids: most smaller contractors are terrible at estimating.

Most new construction deals require you to give up to a 10-year warranty on some items while most fix and flips come with very little extended liability after the sale excluding gross negligence which is not stopped by an LLC in any case.

@Scott Suryan we've review REI Nation's processes and met Chris - if we ever did turnkey, we'd model it after their systems!

What’s that say about Grocapitus and their business model. 

As expenses fluctuate (property taxes, insurance, maintenance items, etc), the cash flow will be up and down and unreliable.