If memory serves correctly, he was negotiating sex in exchange for not collecting rent and operated poorly maintained units. 

You could avoid (delay) paying taxes on the Sale if you did a 1031 Exchange. 

Since there was no money exchanged, I doubt any action is worthwhile.

Offer to take them to lunch/coffee in exchange for chatting with you.

http://www.biggerpockets.com/starthere http://www.biggerpockets.com/ubg http://www.biggerpockets.com/meet Setting up Keyword Alerts How to Use @Mentions on BiggerPockets 25 Tips for Real Estate Success Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

In exchange for that possible high return, you take the chance of a low or negative return.   

We have a lot of plans with what we will do with the profit (we are rolling the 30k profit into two more financed rentals via 1031 exchange).

The use of single-member LLC to hold title to individual real estate assets (as opposed to multiple properties being titled in the name of one entity or individual) is used to limit liability risk, creating “bankruptcy-remote” special purpose entity standards, and also to facilitate tax-deferred, like-kind exchanges under Section 1031 of the Internal Revenue Code.

2) Transfering assets to an LLC with no money exchanging hands (or even looking like it exchanges hands) is one (of several factors) that may weaken the protections offered by an LLC.

He carries 60 month notes at 9%, no money down and no points in exchange for a first mortgage.