My advice is to spend money on her along the way.

The concept behind it is to use money, yours or other peoples, to purchase the property.

Risks/rewards, benefits/pitfalls of hard money to me...what are they?  

Any recommendations for hard money lenders?

Why are you losing money just to keep this guy?

You have NO leverage, no matter what he builds or does not build, except for the developer saving some money in legal fees and cutting down on mesne profits damages.

There are plenty of hard money lenders out there to fund your projects.

Make more money, buy more buildings, and repeat.These folks have compounded their wealth significantly faster than their W2 counterparts since they don't lose 30-50% to taxes each year.

Partner used a hard money lender to close on this property.

If a tenant refuses to pay, one wrong move on an eviction notice can reset the process, causing your friend to lose months of rental income.Courts tend to favor tenants who can prove the landlord failed to follow legal procedures—and without experience, it’s easy to make costly mistakes.The Harsh Reality: You Have No Skin in the GameYour friend is putting up the money, the risk, and the liability.