Our trustee had me sign to accept sale of our house sale under contract but he added a sentence that I agree to 5% realators commision.

Boiling down your post, you are asking the following question: "Why do so many GPs want to raise capital in $25K - $250K (sometimes up to $1M+) increments from 'unsophisticated accredited investors' instead of from institutions?"

I recommend you narrow your focus down to a market and look for a good PM first.

I have no driveway so I put a down-payment on an asphalt driveway.

I was planning on using an FHA loan 3.5 % down but I make about 80k a year and have about 120k saved liquid.

This is a massive difference from the 15%-20% down that was required previously.

The neighbor who is renting the house next door did move it across the street and two houses down from the property (about 200 ft away).

You should read the Bloomfield master plan to see if development is headed in the right direction for your investment goals.  

Ultimately though it comes down to what you and your partner want to do.

. $1 million home. 20% down. 800k Mortgage.