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.

With all the resources available today to research and learn about the industry, I’m surprised this “easy money” mindset persists.To me, real estate is far from passive or simple.

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.

Why are you losing money just to keep this guy?

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.

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

Some people are able to save money and budget and others are not really good at it.

Any recommendations for hard money lenders?

Before investing a lot of money in one of those gurus' programs.To start is, as a foreigner, you can only buy into new developments.

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