In that scenario, people will not be able to afford every day items let alone real estate.

Dont forget that Texas has very strong laws on returning security deposits. you have 30 days to refund the remaining security deposit and provide an itemized list of everything that was not returned.Failure to provide both the itemized list and the check in that 30 day time frame could open you up to treble damages.

I have been doing things the traditional way by finding a property, going to look at it 3 days later when I get off work, and then putting in an offer a day latter.

We are on a limited budget for this line item so looking for a long term partner in this respect that is not trying to retire on one or two jobs.

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?

He'll have to save an additional $44k in a year to do a traditional mortgage?

A lot of traditional lenders don't really understand HM and how it works.

I offered cash to the seller to move out and purchased a couple of the items in the house which were very nice.

The taxes and the insurance get separate line itemized under expenses. 

I want to get into fix and flips, rental properties as well as a traditional agent.