@David Michael I lead the Pacific Northwest for Builders Risk as an Underwriting Manager, there are various things to consider when looking for builders risk.Underwriters will want to see: Gantt Chart (Schedule), Budget Breakdown by Division, Site Plan and Elevation Drawings, and GeoTech Report.

- any advice or suggestions besides going through a legit CPA or real estate attorney prior to drawing up a proposal for this type of deal..- any insight would be greatly appreciated!

Pay off taxes and have an lawyer draw up paperwork.

No need to spend money drawing up docs before you have it all set in stone. 

Keep in mind that Galloway has a divide in it.

Fees: request he pay for all fees (i.e. setting up SD ira, drawing up documents, recording, etc) I will do the work to find the SD IRA custodian, title company, and other professionals that is necessary to structure the loan legally and works for both of us.If you have done something like this, how did you handle the situation.

The salary versus the owner draw distinction is the critical part of all of this.

Make sure you have a good RE lawyer draw-up your agreement and knows your state regulations and law. 

I gave the seller roughly 6% downpayment, then put an additional 12% into an escrow account that I can draw upon as construction is completed and he can go after if I default on payments.

Divide by 4 weeks, $7.95/week, times 3 weeks for unusable time, $23.85.