Plus, a million other potential factors that I can't even think of that could affect the area.The fact that the Bay Area has retained as much control of the technology industry is actually pretty impressive.  

If you are going to hire another contractor or keep his retainer or his bond I would discuss this with your lawyer so you do it the right way the first time.

I actually have read the guide but I plan on re reading it to retain the information one more time around.

Here you retain title (i.e., they do not get a deed), but you have a contract to give them the deed after a certain number of payments are made.

We had to call the corporate office to get it resolved.The bottom line is that this stuff is not easy and you have to guard against it at all times to retain your ability to borrow.

I can fund the rehab and put a 2nd mortgage (with SAM) on the property instead of a JV.Benefit to you: you retain full ownership.Benefit to the lender: no liability of real estate ownership and I can foreclose if you don't pay

Also, I will need to form a corp for this so I can retain earnings in the business without giving it to uncle sam.

The first benefit would be they would be collecting interest payments, the second would be if time has passed and the property has built equity and you have defaulted on payments then the seller can foreclosure, retaining ownership again and can capitalize on the equity.

Not sure what options are and how to do it properly while retaining as much value as possible.  

Our job, though it's a "spec' it required a huge amount of excavation, retaining walls, etc.