. $300 to form a native TX LLC - which itself has, from what I understand (NOT being an attorney), excellent legal protection. 

If the partners are active, actually helping with management, signing loans, etc, then it is a JV and you can form a simple partnership to own it, but still will need to consult an attorney to draft docs and make sure everything is covered.For the 20% PML/80% bank, you will need to be careful with your lender, as they may view that as debt too, which it is. 

T3, T6, T12, Guestimate or Pro-forma would all help frame this.  

Originally, I Was going to form a Single member with just me as the owner, but I am bringing my brother in because I want the LLC to fill a tax return so that few years from now it can help if i want to sale the properties or buy more properties as i will be acquiring more.

Does your pro-forma include a development budget with all soft and hard costs included as well as an operating budget, equity cash-flows, sources and uses of funds, lease-up time table, sales proceeds analysis, etc.? 

Ahh I see, I'll have to do more research on the LLC side of things, why is it then that a lot of real estate investors insist/advise newbie investors to form a LLC for investing if the banks won't fund them?

If you can hammer down your assumptions and you can get that number down to 40% you'd really be moving the needle on your pro-forma.

Two of the major differences between what I use and what you have are calculations for future years (P&L pro-formas, effectively), as well as calculations for IRR, DSCR, and ER. 

If you try to turn this over to investors and you have a deal that has terrible numbers, those investors are going to form a negative impression of you from the beginning and you may lose them from the start.Good luck!

I’m seeking advice that can help me form a contract that is in basic comprehensive layman terms.