This is a great place for like minded individuals to come together, exchange and network.

Those new ultra modern condos aren't for the locals, yes there are some young professionals moving down for jobs, but many of these condos sit vacant since they are purchased by foreigners as a way to park cash.

We are impressed with this person's success and knowledge, know him to be a stand up guy (he has contractor background too), and see a win-win for both parties with future deals and lead exchange downstream.The funding scenario is . . .80% Hard Money with 20% Private Lender Gap Financing1st Position Loan Amount80% Hard Money for Purchase and RehabFinancial Requirement - $144,000Use of Funds - 80% Purchase and 100% RehabLender to be Recorded as 1st Position Lien HolderLender Holds Back Construction Funds and Drawn Upon as Needed.2nd Position Private Lender Loan Amount20% Private Money for Purchase and Carry CostsFinancial Requirement - $35,000Use of Funds - 20% Purchase, Closing and Carry Costs for 1st Position LoanTermsLender to be recorded as 2nd position lien holder on title filing12-month balloon note with no prepayment penalty2 points and 10% annualized interestPrincipal, Points and Interest to be repaid at retail sale of the propertyMy stepson is well aware his 2nd position can be extinguished if things go south.  

In states other than where you formed the LLC, check whether the Secretary of State requires you to register as a foreign LLC. 

The 2008 condo bust was due to low down payment requirements from banks in Florida at the time (only from 10% to 20% was required to purchase a property), the majority of buyers; foreign and domestic alike purchased multiple properties and what ended up happening was that most of them were not able to close on the units.

Although this will be a spec build, so to speak (as I plan to sell both units after construction), I have owned this property for more than 20 years and have rented it the last 8 years.I also plan to do a 1031 exchange with the proceeds, to purchase a like rental somewhere on the peninsula (and perhaps move into for retirement).I do not do this for a living, and this is the only property I own besides my primary residence.With the above in mind, will the donation be applied to my income taxes under Schedule A, or somehow applied to the basis of the replacement 1031 home?  

@Sharry NelsonHave you thought about teaming up with a large rehabber in your area, to offer your design services in exchange for some mentoring, overseeing of a flip? 

I want to do a 1031 exchange with that.

Also are there any investment clubs (focused on First Trust Deeds) where such like minded people meet and exchange ideas?

My proposal was this: we buy properties using his DTI capacity (which should be enormous as he makes alot of money) and in exchange he gets to write off all of the depreciation from the property, because, as I understand it, only one person gets to write this off anyway.I use a property manager for my current rentals and I plan to keep them for this venture.