As I look at my activity on the private money funding side.. other than well established turn key companies that I help on the inventory side... my go to teams that are very profitable have one thing in common.. they are Real Estate brokers and agents ...

Most banks (if they even do construction loans), will require a 700+ credit score and 20% down on the hard costs of land acquisition + construction.Here is what I'm thinking:1) Get a pre-approval for my customers for a traditional loan2) Get some sort of equity down from the customer (cash or land) so they've got skin in the game3) Do an appraisal on the after construction value of their home4) Assuming the numbers work out and we're covered in the event that the original customer can't close, build their home for them with us fronting the money5) Sell them the home at completionI have two questions for you all:1) Do you think a hard money or private lender would be interested in this, assuming I'm offering 12% interest on their money for the 3-4 month build time2) Do you see any legal problems with taking money from the customer and then selling the property to someone else if the customer screws their credit up during the build and is unable to close?

In this case, it would be "private money" He might offer you 100% financing for part of the equity if the LTV is low enough (generally, hard money lenders do not want the total loan, acquisition and rehab to exceed 65%.

Daniel, I sent you a private note. 

Is it commercial loans, private money etc..?  

Hello Shawn Crawley,I created a private note within your profile sir.

Hi everyone,I am a beginning real estate investor with a question regarding private lending. 

@Katherine Earle,You'll want to learn how to find and partner with private lenders because they will be looking at the deal first and your credit second, if at all.

All parties have good intentions but you will be wiser to start your land lording career with a safer bet.Laws vary from state to state on your rights when sharing your own private property. 

@John AimonYour daughter's profession should be the source of all the private money you will need.Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info.