In this case, you would organize several investors to make one loan against one property with each of their names listed as the lenders on the note, along with their percent participation.

Harold its risk reward and what your comfortable with.8% is basically bank money I borrow from banks at 1 and 5.5 to 6.. so 6.5 to 7% apr.. and those are FULL doc deals with PG's etc.at 8% I would want to know this guy has money and get a PG  ( personal Gurantee) you may also ask for some equity as well.. very common in these deals.. its called a participation mortgage I have been doing those for 30 years they work great.ground up construction is risky from a lender point of view.. you have things to think about and worry about.1. what happens if it gets half way done and the builder walks.2. are the subs being paid... you want to monitor that as well.some things to think about.and generally I am not one to run off to an attorney at the drop of a hat.. but for a 500k deal I would have an attorney write this one up for you and go through the risk factors in your state

If that's something you'd like to participate in , let me know.

I have had several brokerages institute high minimum liability limits ($250k/$500k/$100) for their agents and have their personal auto policy include a "business use" endorsement... but asking every agent to get a commercial policy and name them as AI is over the top and not reasonable.

The only reasons to select a financing contingency is that a lending institution will want to see it in the contract and that the seller is alerted to the timeline.  

If you end up having an event/meetup before April 18, I'd love to participate.  

I have represented financial institutions in hundreds of mortgage and lien foreclosure cases.  

@Jeremy PaschedagThe following IRS link covers the IRA prohibited transaction rules.https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Prohibited-Transactions

The account switches to "closed" as-is and freezes in place without having a chance to exit "new account" status.The same lender will not let you do close them within 180 days because it starts to look like the institution is "churning" you to collect fees and whatnot, which is a big no no.

With this report a reasonable market participant could estimate the underlying value of the property.