Here is some ballpark costs from a recent closing, ignoring costs directly associated with financing. 

However, I tried to conduct some research on the two firm founders - Anthony Grosso and Christopher Palermo - to find out where they worked before, what expertise they had managing CRE, who they were associated with, etc. - typical due diligence items to gain confidence and assess credibility before turning over any of my hard earned money.

So he can either mortgage what he's got now, let's say at the 8.5% rate, get a tax break on that interest and associated property costs such that his effective tax rate is maybe 5-6%, or he can sell everything, pay 20% capital gains tax, then put the money into some ordinary income bracket and pay 25% or more taxes on the interest in perpetuity.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Before I became a realtor and got CAR forms, I got my leases through my membership with the Southern California Rental Housing Association.

Where the property does not currently cash flow, would getting and paying for a personal loan in my name, lead to potential cause to pierce the vail in a potential legal dispute if all the expenses associated with the loan is ran through the LLC?

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

The book on Advances Tax Strategies by Amanda Han and Matthew Macfarland is a great book to understand the tax implications associated iwth investing in real estate syndications.

I have a law degree and 32 years of business experience.

This legislation is meant to stop unlicensed individuals from being compensated by any means associated with buying and selling real estate for others.