Interesting in my 30 plus years of HML lending I have never made a loan subject to a judgement.. you as lender would be put into second position and the Judgement holder could if they wanted to do a sherrifs sale and wipe you out.. the real benefit to me is landlords pulling credit..just my experience and who I write my escrow instructions..  

So I am trying to find an area that will most likely cash flow positive with a 70/30 LTV.

if you have NEVER done a build job or spec i think that financing will be your biggest hurdle.also your cash position is quite weak.. sometimes vertical lender will over look experience if you pay cash for the dirt.but leverage and no experience leads to no deal.. this would be a decent deal for a local builder given carrying cost sales costs etc etc.. how much they would cut you in for finding it and providing a little bit of cash is up to negotiation of course.

So you have increased your equity position and have more investable cash than you started with. 

If they would be willing to carry a seller 2nd for a portion of the acquisition, it might help open some doors to a 1st position lender who may not want to leverage 80% LTV.

There is the positive cash flow while having a tax loss benefit too consider with this method, but if you 'buy and hold forever' (somewhat our plan also) there comes a point where with rising rents and declining interest payments when that tax loss benefit goes away.

Hi everyone,I am 19 years old and a freshman at UBC (Vancouver). I recently became very passionate about real estate, and decide to do some investing this summer.I currently rent a small basement room for $800/month. ...

Hopefully, I'm able to place myself in a better position by the end of summer to go with an FHA loan.  

I won't be in a position to even refinance my current home until sometime next year, and then I can begin the process of building the rental empire one brick at a time. 

@Brian Medansky I've gotten a lot of positive feedback from my realtor, lender, inspector, attorney all saying the area is set to appreciate in the next 3-5 years.