There are two publicly traded REITS I know about that do this Farmland Partners (FPI) and Gladstone Land (LAND).In addition I hear pitches all the time about buying coffee, cacao, and other agriculture products in South /Central America.So I'm curious how you would differentiate yourself from them.I was a bit disappointed to see you say 'high total risk rated returns'.

Does anyone have any advice, either from experience or general trade knowledge, on lenders they've worked with in the area, or if this is even a good idea? 

I am a electrician that would be willing to trade my services For equity In a propertyI have over 34yr I have flipped 10 homes for others getting started to move forward for my self

Personally, I wouldn't trade peace within the family for a few bucks.Good luck.

Consequently, my partner and I started investing out of state. 

Are there penalties/consequences?

I know in our market were just the building permits per house/ unit run 40 to 60k each..  5k to me just is trying to lock in the buyer so the buyer has some skin and just does not tie something up with no consequences if they back out.. 

I’m a contractor by trade so I can handle all the Reno work top to bottom so that aspect doesn’t worry me and I’ll save money on the labor.

One thing to consider if you think you might move back then keeping might make sense or be prepared to trade CA house value today for one bedroom Socal condo later for that same value is very possible. 

Fair is trading like value for like value - this is a handout of sorts (don't get me wrong, I am all for helping family out - it is just important we call it what it is and not confuse this with investing).