Hard money lending, residential RE flipping

[Korch]

Hey guys, looking for some opinions here.

An acquaintance of mine, is planning on starting an endeavor with hard money lenders who will loan her money to buy a home selected by a guy with a construction crew. The guy helping her choose the homes claims to have a lot of experience buying properties, fixing them up, and selling them for a profit. He currently has several construction teams and feels he makes more money selling out his services than flipping on his own. She has to put $5000 down on the first property and she’ll get 100% financed in subsequent transactions.

This seems a little shady to me. Since I think she fits the profile of someone who could get duped, I’m checking into this a little. Does the above fit the profile of legitimate enterprise?