Private investor 400K gift.

[Jim Keller]

Bigger Pockets..... I have found a private investor that has $400,000 to invest with me.  I have a newly formed S-Corp that I will be conducting this through.  The investment will pay 11% upfront to him or $44,000 and the remaining 356K will be secured in a bank account.   This money will ether be in the account, escrow account, or first morgage on our investments.  

We will have an agreed accounting method that will be presented every month.  Then at the maturity of his investment we will pay off his principle ballance and hopefully get a new commitment for the next year.

Does what I'm saying here make sense to anyone.  What are the pit falls, or the things I have over simplified ?