I only ask because straight to MF is a road less traveled.

Given their poor execution, I asked him what would it take to cut the loses and pay the principal back and he said it would result in 50% loss of principal.

If your relationship with the old PM has soured, they may work with you to cut the relationship for less than the contracted price. 

80% LTC is standard on ground-up construction, if they are using an experienced builder, have decent credit & the after-build value is sufficient, it should be a fairly straight-forward loan.The main problem I see with non-experienced builders trying to build is lack of funds, they will need 20% of project cost + Closing Costs + 6 months reserves.

Partner with someone and do the work for them and take a small cut.

Last minute they changed the deal to a mortgagee loan and cut the SOW from $65,000 to $40,000.

Grill me, shoot me straight, anything helps. 

I would introduce yourself to the parents (really all of the neighbors, it is a good thing).The parents will help keep the kid on the straight and narrow plus it helps show that you are a responsible STR owner working within the community.

Con Men do not cut off there own e-z $. 

There's nothing special about it beyond some added, very straight forward paperwork.