I have done extensive research in the risks, how to structure such deals to mitigate those risks as effectively as possible, and legal considerations of each strategy. 

Hey David, ADU's can be really cost effective and great return on your investment.

But, I bet-ya it's also effective.  

Quote from @Scott Tennell: For real estate investors who have worked with private money lenders, what strategies have you found most effective in structuring deals to ensure both parties are protected and the funding process runs smoothly? 

The main issue is a consistent lack of effective management and oversight.

There's some mis-information and mis-understanding of AP, the process and it's effect in this thread.

If you have not heard of the Dunning Kruger effect, look it up.

For instance, one investor I worked with used it to jump from a duplex to a 4-unit building in Phoenix, effectively doubling their rental income as well as the forecasted appreciation rate on their new property.

Buying an out of state rental property from a realtor, wholesaler or off facebook or zillow etc as opposed to from an operation or turnkey provider who has an active, substancial, and effective boots on the ground team or teams to support you after you close on the sale. 

There's other dialers out there that's more custom tailored to organizing calls, lead follow-up plus much more cost effective and honest with a live customer service line.