If you have a realtor I would have them approach the selling agent.

I approached my family and asked them about being a private lender.

With the custodian approach, they hold the funds, sign every document, cut every check, and receive every deposit.If your investment interests are more dynamic, and will involve multiple assets or assets that require a lot of transactions such as rental property, then a plan offering checkbook control such as an IRA-owned LLC will be more more effective and efficient. 

I will approach him with the understanding how much it is going to take ($) to get to the same level as others.Through your analysis these motels sold btw $ and $ and you subtract your cost of rehabilitation. 

@Daniel DietzYou're right, your qualified Roth distributions would not be taxable.I agree, that accurate values need to be established and a formal appraisal is the most conservative approach in being able to show that you went to the greatest effort/cost in attaining that value.

Another approach I want to explore is doing a cash out refi on our current apartment complex and use some of that cash to finance the deal.

I tell them my boss buys houses in the area and then ask if they are selling or interested in selling.I know there has to be a more efficient way, maybe going closer to the actual foreclosure date so they realize the urgency or something along those lines and also maybe approaching the conversation differently.Does anyone have any advice, or methods they have found to work effectively? 

I've been trying to find out how to connect with a hard money lender in this area, but I don't know anyone who could possibly help me.Also, how would I approach a private lender or hard money lender?

If there are other qualified applicants it should be first come first serve approach.   4- Depends on the location and what the law requires. 

If you approach it cautiously and with good assistance your chance of financial gain should be high and the likelihood of losses should be very low.