Normally a 10% deposit payable to PR is to be expected. 

Being in Georgia I have come across a few.Is it normal for the interest rate on these hard money loans to be so high?

Normally I'd agree that the important info is ARV, debt, and condition.

Should you go around offering 65% LTV on all these properties or what is a normal strategy?

What that means is you could have 1 duplex for $550, but adding another duplex would only be about $642.Other states about $80 would be a normal pricing.  

It sounds like he is talking to a normal banker at a big bank.  

Construction costs have gone up a lot anyways even if you aren't changing zoning around so I think it normally makes sense to redevelop existing product if you can. 

So I believe he was thrust into a position he didn't normally do and therefore dropped the ball on ALL the paper work.

That's not really a normal HML loan, they are usually for quick flips because the rates are so high.LendingHome has a long term product, they are out of California (I broker for them), its basically a 5/1 ARM at LIBOR +4.75%. 

Along side my normal job I have been doing some work on families properties that are were getting ready to up for sale, and another for new renters.