probably very similar to microfinance… people put money into the co-op and then make loans. the profit is then split. that’d be my guess. like a credit union.
but… why do you care if it’s respectable? and the risks to a borrower if the bank goes under aren’t really risks.
one final note: i strongly suggest getting your own real estate attorney. plots of lands can have all funny sorts of easements and covenants that may not be disclosed to you.