I try and avoid writing 4 figure checks if I can :) they may be thinking of this as just a timing issue.

Protect both parties from the what ifs to avoid some uncomfortable situations down the road.

Developer says that can be "backed out of my taxes," which may be the case, but I still think I should try to avoid a 1099, right? 

It will make things less risky for yourself starting out as you gain experience pile on the risk because you know how to avoid costly mistakes.

My reasons are:I'm primarily trying to avoid rehabbing and landlording.

This will probably allow you to live for free and your parents to avoid a dorm or expensive home payment while you are in college.

On a side note, Id like to avoid messaging this particular individual due to a pretty hairy falling out that was had… Best, Michael

You are shifting taxes, not avoiding them.

I was really just trying to avoid the VA funding fee.

An attorney can draft an agreement to avoid capital interest. - If you dont want a taxable capital interest, your interest should only share future earnings and appreciation attributable to the profit interest.