I expect the project to be ~1.7M and am raising ~600k to cover planning and initial costs and financing the remaining 950k (750k/1.7M = 44%).My neighbor is considering selling me their (larger) property for 600k that is wholly owned but has very high cap gains pending.We are both concerned with minimizing fees and tax penalties.They are open to an idea I proposed where they would transfer the property to me in exchange for a comparable position in a LLP limited partnership stake in my project which would enable me to take out a HLOC sufficient (or nearly) to fund the project and buy them out, plus interest, in a chunk once complete/over several years.Another thought was to owner finance with payments to them spread across say 5 years from the added value to the developed project but it seems that muddies the ability to establish an equity line that they aren't affiliated with.Ideas?  

Notwithstanding this section, a licensee may not pay or offer to pay a referral fee or finder's fee to an unlicensed individual that is not a party in the real estate transaction;(12) violates any provision of law relating to a buyer's freedom of choice in choosing an attorney, insurance agent, title insurance agent, or any other service provider to facilitate the buyer's real estate transaction;(13) fails to disclose in accordance with Section 40-57-139 the party or parties for whom the licensee will be acting as an agent in a real estate transaction;(14) receives compensation in a real estate transaction or directly resulting from a real estate transaction from more than one party except with the full knowledge and written consent of all parties;(15) represents more than one party in a real estate transaction without the full written knowledge and consent of all parties the licensee represents as provided in Section 40-57-137(M);(16) acts in the dual capacity of agent and undisclosed principal in a real estate transaction;(17) accepts deposit money which is to be delivered to the licensee's principal in a real estate transaction without informing the payor and having the payor acknowledge in writing who will hold the money received by the licensee;(18) issues a check in connection with his real estate business which is returned for insufficient funds or closed account;(19) fails to disclose in accordance with Section 40-57-137 any material facts concerning a real estate transaction;(20) violates any provision of this chapter or a regulation promulgated under this chapter;(21) violates a rule or order of the commission.(22) induces a party to break a contract of sale or lease, listing agreement, or buyer agency agreement;(23) engages in a practice or takes action inconsistent with the agency relationship that other real estate licensees have established with their clients;(24) fails upon probable cause of an investigator of the commission to make all records required to be maintained under this chapter available to the commission for inspection and copying by the commission or fails to appear upon probable cause for an interview with an investigator of the commission.

And, as always, due diligence, due diligence, due diligence before establishing the relationship. 

I'm currently in the "education" phase and looking to establish a solid business plan/strategy for flipping and buying/hold properties.

I was going to transfer my Individual 401k (currently with Schwab) to a Self-Directed Solo 401k with Provident Trust using them as the Custodian ($495/year) and then also establishing an LLC to which funds would be transferred and controlled. 

So,What type of business entity should I establish for my RE investing business?

As I have not started yet, I want to believe I can establish relationships that I trust, I guess my question was, am I being naive in thinking that? 

It's almost a guarantee that the lender is going to require that it be a SPE so having it established isn't going to hurt you.At your level, you, and any other guarantors, will be the ones underwritten on the guarantor side of the loan since you will almost certainly be looking at a recourse loan.

You can go out a rent yourself, and your rental will still count as a rental.If you are moving to Florida for a valid reason (new job, new business, be closer to parents, etc.) and can establish that this is not a strategic "move" (your child is enrolled in local school) you can buy a property in Florida as your primary residence.The rent credit will depend on your experience as a landlord and LTV of the outstanding loan.Hope this helps.Upen PatelMortgage Banker, VA Loan SpecialistNational Lender, Federal NMLS# 1374243

What you might credit a buyer with is not necessarily what lender will credit them with and then they are short on the down payment they thought they established.