No leverage would be used.I've read "The purchase of a business operated via an LLC or partnership will POTENTIALLY trigger the Unrelated Business Taxable Income rules under IRC 512 and a corresponding tax of approximately 35% would be applied"What I cannot find are the actions or measures one should take to eliminate or avoid the potential trigger?

You could form an entity for the partnership, then provide proof of funds for the entity and proof that you have the ability to act on behalf of the entity.

I am a new investor in Charlotte, NC and being new to investing and the area I'm seeking people to link up with for general conversation, partnerships, guidance, etc.

Rents are going at about $700 or more.Some of my options are:1) Demolish and construct a new 2Bed/1Ba house for rent or sale2) Demolish and construct a new 3Bed/2Ba house for rent or sale3) Demolish and sell the lot off.Limitations for meI am presently working on this deal from Singapore but have formed some nice partnerships with a few people in San Antonio who can help to oversee any decision I may undertake.

How do you guys go about splitting the profits in this type of partnership?

This is a capital intensive sport, so I am developing for strategic partnerships in the community to be able to continue to play the game (ie: Banking Relationships, Birddogging for a wholesaler, pairing up with a larger investor, helping my mentor win, ect).

I'm not talking a JV or partnership, I'm looking for a mentor and someone who is looking for that kind of relationship.

I have a partnership in which I handle all the financial side of things (Pay for the cost to purchase, sell, rehab cost, cost to hold etc) my buddy does all the work on the houses and we just split the profits evenly when we sell.

I would take on any sort of payment/ownership of the property.My question really boils down to what an appropriate partnership model should look like?  

At a minimum, you should have a partnership agreement in place to outline financial and duty responsibility.Now to your specific question is it better to be approved and qualified?