I have heard different positions about this... both have good points; on one side the new or small wholesalers are more "direct", many times only "one closing" instead of 2 (big companies) which can save a lot of money if you do several deals per year.

While sophistication of your equity partners (private money lenders) will vary between residential and commercial, the principle of raising private capital is the same.You need to develop your own system which allows a constant stream of PML even when you don't need the funds and/or don't have an active deal under contract.For example; I raise private capital by offering free educational workshops for people with self-directed IRAs.

Have you considered collaborating with them where you could pool your resources and directly benefit from their experience?

look 1-2 hours away in every direction. 

Have you thought about staying invested in real estate without the headaches of direct management?

We have one as a rental and have long term tenants there who are great and we have good communication in both directions.

He did a good job but looking back on it now I think I could've done alot better with more insight and direction How did you finance this deal?

The foundation was already approved, permitted and finaled years ago for a 3400 sf house, and its solid and I won't be building directly on the overhang edge; but rather back away from the edge a few feet to prevent any load issues all the weight will be on the longer sides of the existing footing.

As part of his investment of capital into scaling, he hired a marketing firm specializing in SEO, SEM, social media, direct email, etc.  

Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.