Great idea though!

He should not be required to have a contractor license so long as the work that you do is permitted and inspected properly.

It's a good idea but it's like anything else in a lease - you have to be prepared to evict if they don't carry/keep it.

Any suggestions on how to go about this properly?

You have seen it for 3 years in your daily lives, when you go to the store, or buy a used car, try to buy a home, order parts for your widget company etc…So in summary, prices are here to stay and we need more homes to be built, likely catalyzed by proper incentives / less onerous regulation.

If I borrow money from someone directly what is the proper way of doing that?

There isn't a magic bullet, and I didn't reveal any new shocking ideas here. 

.), but it can be a great market if properly navigated.

I'm looking for recommendations for someone who has experience structuring loans to minimize the taxes for me as well as either a service or software to maintain the loan, writing the note properly and how to receive payments etc.

Maybe you're a crazy BP newb who has no idea what's going on and he'll expose you.