This also allows for a newer investor to network, partner, and build relationships with lenders early on, so they are not stuck trying to find lending options that will consistently throw them high interest rates and higher origination fees. 

You may have to pay a fee but they will still only go out if you are very serious about making the offer "right now" if they give you "good news".

The appealing aspect here is the ongoing population growth and other economic factors.

I would make sure that you are finding the market you want to be in for many factors not just one, cashflow for instance.

I am looking for a builder to partner with who will finance building costs (and get reasonable GC fees above cost for their efforts as well).

Markets change, and as market factors change, the job we give to each dollar should also change. 

Net after fees and expenses 40k What made you interested in investing in this type of deal?

Here in Chicago the most I’d be comfortable with holding is a trash out fee if they left trash in the yard.

The biggest risks to me are: Capex costs: these can often be understood before you buy a property, but anything missed tends to be a major factor.  

For instance they will need to disclose their fees up front as an example.