The more time you spend talking about other options and try to build up the negatives, the less time you are spending on what you fell are the positives of your own idea.If you believe that you are onto a great idea using L2P option contracts and forming partnerships where someone else provides 100% of the money while you provide 100% of the real estate-related functions, then start it up and make it work.  

Does any one have any leads on lenders who provide loan for groundup constructions and the criteria?

Partner Driven provided market expertise and handled the logistics for a rapid flip.

Quote from @Stuart Udis: I am always skeptical of these real estate "gurus" and course providers.

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

Some builders risk policies don't provide for live in.

I would start with them.I am not based in LA, so I don't know your exact laws, but I think I can still provide some initial direction for you to find answers, and maybe offer an idea to research.  

American Family recently discontinued their multi-family coverage, leaving many property owners scrambling to find new providers.

I'm struggling to understand some aspects of your response, but it provides some things to think about.

Alternatively, a private or hard money loan could provide faster funding if traditional lending timelines don’t work, with the option to refinance once the build is complete.