Do you think this issue is specific to banking services or what do you think is the root cause?

He is looking at a group of investors like myself to bring 25% of the project value and then procure a bank loan for the remaining 75%.

There are several myths that we have to debunk before someone truly believes they can do it.You need millions of dollars to do a dealThat it’s too complicated to figure outThat permitting takes yearsIn those communities developments cost way less (think a couple hundred thousand along with a loan from a regional bank), permitting is not difficult (much less red tape), and the towns are small enough that both the city staff and the local architects and engineers and contractors all work with you to help you navigate the process since you’re all invested in making your community better.Note: The big boys can play in the primary & secondary markets.

Essentially the Fund would be our bank that lends to my LLC who purchases the properties.

I personally do three types of lease options.

T First person I've heard say I look forward to the losses.

Read this: https://www.irs.gov/businesses/small-businesses-self-employe...Second, compensation is always issued to the person working.

Quote from @John Clark: Did you check for houses on the auction list,  or you can check with banks and look for REOs and convert that into a single family home and house hack or turn it into a Airbnb. 

Bank related issues can be prosecuted for 10 years.

Banks and attorneys use it for skiptracing so, it would probably be good for you too.