Also because I had a significant loss of income last year. 

All businesses have losses and landlording is no different.2.

[Note: There is a caveat here: if the corporation employs 5 or more full-time positions, then the income would be classified as "active" and would be taxed accordingly].When rental property is held by an individual, the net passive income (or loss) is added to that individuals other income and taxed at the corresponding marginal tax rate.

There is very little you can't get actual numbers on when calculating profit (or loss) on a rental property.

There is a provision in the contract, that if we decide to SELL the property after the plans are approved, but before we start construction, that I will be compensated 5% PER ANNUM on the money that I invested, AND we will split the remaining PROFIT / LOSS - 50/50. 10.

These all have grey areas as to the amount of loss of time or money.Contracting with these aspects will generally drive the cost up too, the more you require the more they may charge.

And since the borrower has no skin in the game - who ends up eating up these losses - me, the private lender.Bottomline: there's too much risk.

If not, then chalk this up as a learning experience as it will be a loss.    

Hey its their loss I am a wholesaler and would cater to my buyers as much as possible.

If you can't sell to recover your losses, you might be out, other states you obtain a deficiency judgment and hope you collect from that.