New development: best way to incorporate and raise money

[Jack K.]

Situation:

My friend's uncle has a $2M property in Queens, NY. An investor offered him $3M but turned it down. The uncle offered my friend the opportunity to develop it because he's getting to old to develop it himself. The uncle would provide the property and my friend would pay for the construction ($2M) to knock it down and construct a 20 unit and manage it.  My friend doesn't have $2M so together with his friends, we are going to put up the money. I want to put up $500k of the $2M, but I also don't have $500k, so I would want to get some of my family involved.

What's the best way to set this whole thing up?

I imagine there has to be an LLC #1 for the project, then an LLC #2 for 50% of the project that my friend and his friends will own, then lastly an LLC #3 compromised of my family for our $500k that we put into LLC #2?

Thanks for any help and recommendations!