If other properties tend to sell at a 5-cap, and you have $40k in legitimate NOI, then the expected market value would be $800k.

Need to be a little more specific.I've worked with sprout before and they are a legitimate operation.

How can I tell if the Private money or even Hard money lender is legitimate?

@Robert FernandezA legitimate construction business is active and should generate positive income, LLC or no LLC.

It’s sad the amount of time these scammers put in to their “business” and I can’t help but think how successful they would actually be if they spent the same amount of time on a legitimate business venture. 

If the construction company is legitimate, this arrangement is not uncommon.

From prop managers to legitimate handymen.

Hard work with legitimate problems.

Here are the terms of the proposed deal:What I put in/get:- I put in 150k cash- I put in the original idea and there are some legitimately unique elements to the community. - I put in countless hours as the developer working on the concept for a long time I found the site, did a lot of research to identify a unique target market. - I'll be doing everything that needs to be done that my partner doesn't do, including marketing the units, ets., raising additional needed capital from pre-sales and investors, dealing with accountant, etc. - I GET 70% of the company and profitsWhat the builder puts in/gets:- 10k cash, mostly for good faith- The LLC/Partnership will rent his construction company for the duration of the project.

I had no problem charging my rentals and management fee, charging a management fee on my Schedule E, and legitimately deducting the insurance and co-pays if it under the C Corps benefit plan.So if your involved in multiple businesses, separately them out provides lot of benefits and flexibility.