Yes, it's a 'safe' investment for you because it's backed by a valuable real estate asset -- {ahem} but how safe would you feel about that if your benefactor didn't make payments and you had to take the house back?

We've started to assemble a Real Estate Investing Guide FAQ to help answer both the basic and most complex questions asked by real estate investors.Please check back with this guide, as we will be adding to it until completed!

What you are doing is giving the S-Corp your property for a valuable interest in that S-corp, even if you own 100% of the S-corp to begin with.

danorton,I'm new to this as well, but I can tell you that John just gave you (and anyone else looking to do any kind of deal--not just RE) some very valuable advice:"Shut up and listen"The best thing you can do when trying to find out someone's motivation is to let them talk.

I suggest you start looking at the various articles and threads about bird-dogging that can be found here:http://www.biggerpockets.com/investing-guide/I also recommend you go to our investor psychology category and look at the various threads there.

Some cash in the bank, line of credit paid off ready for the next project, and valuable lessons learned.....I can remodel/rehab with the best of them but knew next to nothing on the investment end.

Also I would recommend they talk to a tax or real estate lawyer on this one - dont guide them.

If that doesn't work, lose the 6k and learn a valuable lesson.

i know attorney will draw it up, but you want to guide the attorney in what YOU WANT.

Any suggestions anyone has for good books or do it yourself guides are much appreciated.