At first I looked at this as possibly just a failed investment where millions of unaccredited investors lost money (still very bad for everyone involved), but after learning about the involvement of Ronald Fossum that has a convicted history of defrauding investors and the fact that Norada is still raising money from investors, my mind now goes immediately to possible Ponzi Scheme paying past investors current funds being raised.

The fact its in a landbank tells me that it was taken back for some reason, which tells me its likely not a high commercial demand for development, but I could be wrong.If it is "on the main drag" in this town then I'd think doing a new build home to do a targeted and intentional air bnb would be the best bet. 

Your best bet is to find one that has flexible membership options, without high spend requirements.

However, their terms involve a 20-year amortization, a 5-year ARM, and a rate of prime + 0.5% thereafter.I’m exploring other options for financing and would appreciate any suggestions or advice.

But, understand the cost involved.

Investing in real estate and 1031 exchange replacement properties may not be suitable for all investors and may involve significant risks.

I think you're best bet for private money is going to be to network at the meetups (Red Stick REI, RING) and on FB/here.

@Jay Hinrichs      But I do understand the OP points and I think that folks just really dont understand the work and risk involved in ANY rental property short of NNN leases with super strong companies Exactly. 

Your best bet is to read information from public blogs that approach both options objectively.

That is the true value of participating in things like this that are a bit more involved.