If the answer is that he was just putting it in the bank, I would explain how he could be secured by making the loan to me and collect higher interest on his money.I would also offer him one other tidbit that worked in numerous situations.

@Gary Thompson If father in law just wants a loan and interest, rather than being involved in the risk and the reward then he should just do the hard money interest rate.

Once you've got some experience and a team in place ready to handle whatever rehab nightmare you might encounter then you can consider the risk and reward of buying an auction property sight unseen.  

Realize that anyone who might invest with you will have numerous other places they could invest. 

But I guess no risk, no reward, right?

I'm currently under contract on a smaller, 5-unit commercial office/retail property. 4 of the 5 leases expire in April/May of this year, and one of the contingencies of the sale closing is that 3 of those 4 soon-expiring leases renew for at least one year (I have full negotiating power over those leases).All of those tenants have showed no intention to vacate, and are happy with their current situations.I've seen/read in many places that it is best practice to stagger leases as much as possible in order to avoid the possibility of multiple tenants moving out around the same time, leaving numerous units to be turned over.Would it best for me to try and get 2 of the 4 tenants to renew a two-year lease (which they've done in past) and the other two tenants agree to a one-year or three-year lease (both have been year-to-year in past ).

I’m doing this in Arizona, I love it it’s the only business where your efforts or lack thereof are immediately punished or rewarded, I’m standing up my second property this weekend.

@Phillip Weickert Phil is great and owns numerous rentals himself.  

This will become more important with numerous LLCs.I know this is a question for a CPA and/or lawyer, but figured that others are likely wondering too.

From time to time you need to splurge on yourself.The strategy my wife and I have employed is to give ourselves small rewards.