re: If a group of investors approached you to build homes

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Who is putting up the money, or signing the note?

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Investors is my guess.

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Whose house is it if it doesn't sell

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Tricky, but my guess is investors, I'll tackle that next.

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Who gets less is it sells for less than expected?

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Investors per % of initial investment, although I imagine this is investment group with llc so company backed by investors, as builder would have contract for hire.

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Whose loss if it sells for less than the cost to build?

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Highly unlikely, but investors.

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Who buys the lot?

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If I were developer I would subordinate the lot, any activity is good activity in new construction, and a spec going up in a n'hood shows confidence, people are risking $ that this hood is worth building in without an established buyer. Plus, if SHTF, you can pay off construction loan with subs, deed in lieu, and sell it and make bank, or rent it, per HOA bylaws