In my limited experience with a similar service, they will send you leads and even make offers but you still need to do your due diligence and make sure it's a profitable deal for you.

He will be selling the project to buyers once completed and not interested in operating.How should I evaluate this deal from an investment point?

Many have an unfavorable outlook on the 5+ unit market for the next 2 years or so, while there are a few who are still hungry and actively funding deals in the space.  

I'm interested to see what you more experienced professionals think of this deal as its structured as well as being in the predicament of having our agent represent the seller ( as himself) and us as the buyers.

Without any cash it is unlikely unless you can find a 100% seller financed deal (they do exist, I just did one a few months ago).

The deal doesn't work as well with higher interest rates.

Lots of leg work, calls and emails, but if you can find a few deals that could get you started with enough capital to get into your first deal on your own.

In my home market of Florida, our insurance rates have made it much harder to have positive cash flow on a CRE deal.

If your business is worth significantly more than what you owe on it, you may be able to borrow against that equity to fund your first deal—rather than walking away from a potentially appreciating asset.Some investors take this route, keeping ownership of their business while using its value to qualify for financing or attract a capital partner.

Speak with the director of development (they're not always titled that way, so just ask for whoever deals with area developments, new construction, rezoning, etc.) to ask if they'd be supportive of your plan.