Will there be an issued for me or him as far as taxes or for him in respect to capital gains.

Once your partners commit, many of them may have to sell off an investment and perhaps establish a self-directed IRA or RE 401k, and that can take 30 days or longer.

One thing i can convey is, an ounce of respect goes a long way up there.

While you are doing this you are gaining credibility for yourself and respect from others.

According to persons I've talked to at REIA meetings apparently I've chosen some tough areas to focus on in real estate investing (buying and selling non-performing notes, bird dogging/wholesaling and out of state foreclosure prop owners with the intention to move into a couple flips and buy and holds by the end of this year).I can't focus on all of them at once and have decided to work the bird dogging/wholesaling and note buying at the same time for the next 2 - 3 months to determine which marketing strategies work best for finding leads and establishing relationships with banks for the states I'm interested in.I've known this person for about 10 years and he is very successful at wholesaling/foreclosure/short-sale/flipping.

could present big red flags with respect to integrity and safety (electrical - dependent on timeframe done, asbestos, plumbing, etc.).

However you may want to work with an established broker, possibly make a few extra bucks.

My goal is to establish a passive income

That is the first thing I should establish before I go on any investing endeavors.

One of my tenants in a fourplex I recently purchased, March 2014, has been giving me the run a round with respect to rent.