@Clay Manship
I may be a little bit of a cynic. I might find a way to structure this differently - maybe you help manage the property, or consult for a fee without any cash in the deal. Or define the operating agreement that he would buy you out in 3 or 5 years. The way it is structured you have all of the experience and he has all of the control as the two smaller investors have no control, by that I mean your two votes don't outweigh his ownership- when is it time to sell, replace the roof, raise the rent, evict a tenant, etc.
If you do move forward as planned, I would see if the largest investor can qualify for the loan on his own, then title in the name of the entity. The reason for this is if you put 5k in the hat you are still going to be responsible for the full debt with less than 20% ownership, potentially keeping you from doing other deals from a DTI standpoint.
Not sure what the rents are on this property, but building the reserves is going ot be so important out of the gate. Friendships get weird in month six when there is an eviction and the business can't pay for it without a capital call.
