No Brayn, a valid lien is fine and you already knew that, but that was not what was initially asked or proposed, If you had a valid debt and the debt still existed and later you agreed to give a security interest in property, you can do so, that's a valid lien, if there is no valid debt, one that is only constructed for eye wash, that's a sham transaction and a fraudulent act and it is specifically addressed in statutes with penalties.

Their loan proposal and the closing documents will not match.

@Minh L.The new regulations being proposed to curb Ellis Act evictions make it so expensive for landlords that it would financially make sense.

Read the article in the link below.TALLAHASSEE (News Service of Florida) - A controversial effort to further limit local governments’ ability to regulate and inspect vacation rental properties is advancing in the Florida Senate, as the proposal’s sponsor on Tuesday assured critics that the legislation is “a starting point.” https://www.mysuncoast.com/202...

Geoff,I am an architect here in Chicago and would love to give you a proposal based on the scope of work. 

I'd like to propose a simple question. 

My proposed solution is working with an RE CPA and Attorney to create an entity that would allow the family to pool funds in a checking account (use accounting tools to keep track and abide by all legal and IRS guidelines) funds that if needed will be available to take out as a loan (not borrow against the funds) the interest paid on that loan will go 100% back into the borrowers account, this interest will help offset the lower interest paid by the checking account itself (example Goldman Sachs has online savings with 2.25% interest) if the loans taken have a 1% per month interest on them, thats 12% a year on just the portion of what was taken out as a loan.

OPTION PRICE: The OPTION price (“strike price”) is: $249,900.00; provided, however, if OPTIONOR concludes at any time before OPTIONOR has received proper notice of extension of the OPTION from OPTIONEE that the fair market value of the property exceeds the foregoing strike price, OPTIONOR may (but is not required to) propose to OPTIONEE that the Option Price be increased to the fair market value of the property as determined by a professional fee appraiser selected by OPTIONOR only at the end of the third option extension.OPTIONEE shall have seven (7) days to accept or reject OPTIONOR’s proposed increase in the Option Price to reflect its fair market value.

@Tamara Glass are you working with an architect to design the proposed development?

As you can see, @Stanley Lo, if you go the route you're proposing, you’ll have to research the asset class as well as the sponsors.