I fought like hell to keep the property as my brother and the lawyers wanted to sell it and put the money in the pot.

@Joseph Turano Looks like a great deal and good use of low money down!

If that's what you really want, maybe a friend or family member would enjoy making some extra money.

I live in East Idaho but do Hard Money in the magic valley as well.

Therefore, since this loan will end up sitting on the lender's balance sheet, you should be prepared to pay an interest rate that would make sense for that lender to have their money tied up without earning the additional income they would earn from selling their loans at a premium on the secondary market and being able to re-lend and keep flipping the money. 

Potential asterisk on pulling that money out of the S-Corporation.The benefit of not having real property in an S-Corporation is flexibility (don't have the same deemed gain rules if pulling it out of a partnership), basis in the debt (in your case you don't have any debt).You could still end up with some double tax on this. 

My plan will be to purchase a vacant land with cash and finance the home build through a private money loan.

If you want to make money in real estate you don't cut special deals because of a sob story.

I guess maybe, I could put less money down, so I could show a greater loss for this year?

Go right ahead... burn your money, others have more common sense!