So to prevent this in the future and help others, any flags you should've noticed on the application to catch these guys before you took their money?

100% agree with @John Warren make sure you aren't in a war zone and those prices for a newer built building are a red flag.

Consider this; in less than eleven days, President Biden issued over 50 Executive Orders, including; rejoining the World Health Organization, rejoining the Paris Accords (on climate control), ordering the Federal government on a “war-time” commitment to expand vaccinations, restoring collective bargaining rights, promoting $15 per hour for all federal employees, ordering all infrastructure contracts go to American companies, lifting the ban on transgenders in the military, dissolving the Muslim ban on travelers to the United States, classifying Vladimar Putin’s Russia as a “hostile foreign power,” extending the U.S.

When you talked to them, were there any red flags?

I would continue to educate and build contacts in your investment area and get your credit up just a bit more.A red flag for me would be your 1 out of 10 contacts for the area you wish to invest in.

I looked up the corporation (seems to be listed as a "Ohio Foreign Corporation") that bought it and they bought a few other properties around the city (not close by) at WAY over market value (like 300%) as well.Is this a green flag? 

Not Annual.Would this be a Red Flag to you?

Considering I want to build on this lot (note it is a flag lot & is a one way driveway to get back to the home) The tenant is now moved out & I am wanting to begin building on the lot within 4-10 months.

Would recommend Melissa Glenn with New American Funding.

This time she said 1099 him (the guy who split the cost of the loan to the builder with me) on all of it principal and profit, its up to him to show his cost or expense.We are both wanting to keep it simple as possible without throwing red flags to the IRS.