I'm assuming your client is also looking to build a flagged hotel and that it's going to be a loan amount of at least a few Million?

I currently have multiple clients across five states that have followed this model.

I don't "steer" any client away from a FSBO.

Lately, one of my clients was able to renovate an attic to another unit, where all the other investors had overlooked the home because the didn't see that there was a possibility for another unit.

@Ryan Johnston  We issue proof of funds to our clients all the time. 

Admittedly my client asked for a lot, but I was hoping he would counter and we could find a middle ground.

I should have sought out a real Rockstar Agent in the area.I did not vet my GC since he was referred by my Agent(s) on the insistence other investor clients are happy with him.

I suggest stopping by and discussing with them their strategy as well as what their clients do with the loans. 

With that being said, I will often encourage clients who expand their portfolio to have a Traditional LLC that they can use as an Operations LLC, or a "shell company."

Many of our clients invest into real estate with the Solo 401k plans.