Should I spend some of my budget towards a website and implement Adwords to help attract motivated sellers?

PPC: Set yourself up with a PPC (Pay Per Click) account with Google Adwords, MSN AdCenter and/or Yahoo Search Marketing and use geo-targeting to target people down to the zip code using typical keywords like "sell my house".

Many people don’t know this but Google Adwords now allows you to post print advertisements, and radio advertisements anywhere in the nation.

Use google ad words.

Lender A gives $500 and receives 1/5th of 50%Lender B gives $2,000 and receives 4/5th of the 50%Google Adwords Campaign:PPC on SEO websiteBudget is paid per 1 month billing cycleBudget $2,500From start to finish, each lender gets a percentage of the deal based on the percentage of the marketing budget given.

I was thinking of hiring AdWord Nerds to help with SEO and paid ads.

If you are very serious about this business, it may be worth considering the cost / benefit on an AdWords campaign.

Bandit Signs, Cold calling, Direct mail, RVM, Adwords, Facebook retargeting website visitors.

I suggest AdWords if you're going the online route, simple because people will be searching you and submitting info as opposed to just clicking random buttons on Facebook.

There are of course numerous other ways to market to off-market deals like FaceBook, Cold Calling, Google Adwords, Driving for Dollars, Networking with other investors/Realtors, Bandit Signs, etc...