That really refers to "Lien Theory" or "Deed Theory" with respect to how the lien is perfected.

I think what John said was perfect, as long as you are truly serious and willing to do and learn as much as you can, people will respect that.

There is a deed which grants ownership as I described and a Co-Ownership Agreement that says they get the upstairs and we get the down stairs and defines some general obligations.The agreement was drafted in the 80's for our respective parents.The language is vague and poorly written for it's intended use.With regards to FMV of the rents paid to the LLC, I have no idea how they are substantiating the claim.I am very interested in your assertion that the existing form of ownership would not qualify for a 1031.

I should also mention that he is a bit older - which could come into play with respect to how he plans to treat the investment.

Overall there isn't any courtesy or mutual respect I expect.What is the ramifications if I suggest to just terminate the lease?

Also, the forums have helped me develop relationships with people whom I respect and can learn much more from.

That's the bottom line, is the consideration given usual and customary with respect to the risks and rewards of the parties contracting to do something?

I am almost doing a JV in the respect I am doing hard money loans with my 401K.

With respect to the carry forward of losses, my accountant did mention that I could carry these losses forward indefinitely until such time my income was below the threshold.

Knowing deep end swimmers in my native profession, I have deep respect for anyone who has spent the time, devotion, self-education and friendships to do that.