Most of the horror stories that I often hear are about supposed lenders disappearing with what was supposed to be down payment/deposit money so when upfront money starts getting excessive, you have to be careful.A certain Harbor Group is an example of such a company that did cause many members on here to loose thousands of dollars.

My score is still above 660, but the collections and excessive inquiries are eating my lunch right now.

After a quick read, I think this might have some potential IF you can carve out some of the components.Personally, I wouldn't care about the excess land.

We always make the parents co-sign on the lease, therefore, if there is any excessive damage, we can go after the parents for repairs.

While your strategy is not within an IRA 12% seems excessive.

We would receive interest in excess of 15% a year and our investment was secured by collateral in the property.

Which is further exaggerated by debt sitting in excess of home values.

It seems everyone I talked to there was excessively overemployed.

We hard money lenders leverage our time and resources by allowing outside, passive investors to participate in our loans along side us - and we of course earn significant fees (mostly paid by borrower, but of course in some way sacrificed by investor) in excess of our return on our own capital.  

For example, I expect my portfolio to remain mostly real estate (>80%) until/unless I build a net worth well in excess of $1M.