Biggest challenge was the cost of materials and delayed delivery times.

Sometimes they are soldered or glued depending on the material, but sometimes the nipple is simply threaded and you can twist the entire thing out of the wall.

Then, you'll take the scope of work to a remediation company who will do the actual work (tearing out the mold contaminated materials).  

I want to use as much loan as I can deploy.I'm estimating $100k for material & labor for down payment for a build but less for a rehab.

If the selection of a cap rate is done poorly, it could have a material impact on the calculated sales price.

So far example, rather than giving the sponsor a 20% promote for anything above a 12% IRR, they'd receive a 20% promote for every year they exceed a 12% return on equity, then receive 20% on the backend in excess of whatever return brings the cash flows above 12% IRR. 

I'm still getting my operating agreement together, but the general structure will be an LLC of which I will be the managing member/ sponsor, receive an asset management fee/ acquisition fee, and a promote based on the performance of the asset. 

Everyone wants the easy, simple answer to how they get Foreclosed properties, but the truth is, it takes time, energy, research, networking, studying, money for advertising/gas/marketing materials, etc., and most importantly, persistence! 

I have been reading a ton of material (including Bigger Pockets books!)

Do you want to just shadow some active investor/developer to learn what they do (help them with spreadsheets, or pricing materials/labor, or maybe befriend a real estate agent to help them as a volunteer.