I'm not really sure what benefit he is offering you at this point but it seems like you're limiting yourself in several ways by continuing your partnership with him.Mentors can be very helpful, but by no means are they necessary.

I know there have been a lot of posts on the forums about partnerships.

I just started a partnership for a house flipping business with a friend of mine.

You will need an accountant to do the partnership's taxes, so do it now.

Again, investing with your money is fine, buying a note, if you're in a partnership that can change the flavor and become a brokerage situation.Thing about buying illegally is that you could put yourself in a situation where you could not enforce the terms of the loan if the debt was acquired in violation of law.I suggest you talk to an attorney, you'll want to know that the debt was initially made in compliance.

You can also agree to a management fee or make other arrangements to even deals out within the operating agreement.You need to check with your state dept. of finance on your partnership, get an opinion as to any security issues and lending arrangements.

How is your partnership structured?

You will be surprised how you will find more opportunities you never considered before. a) Partnerships or JV with others who have capital & no time or expertise. b) Note income (not just buying notes) c) Management income Congratulations on your journey, it promises to be very exciting.

If you've got the land they may consider a partnership and get something worthwhile built.

C (or equivalent schedule if it's a partnership), and net income is subject to FICA tax.