Their voting rights are based on their contributions.

All 3 factors contribute to prices being lower. 

Your contribution is the land and he pays for all the improvement. 

This is just a guess, might help if you had the balance sheet numbers to see if and what extent this is financed by debt in addition to the General and Limited partner capital contributions.

@Ryan Davis what is your contribution to the partnership? 

For example, if you each put in 50k, then each took out 25k to put it into LLC #2, this wouldn't be taxable (I'm assuming your basis is just what you've put in, and that you haven't earned revenue or incurred expenses yet... things like this will impact your basis).You would just record it as a shareholder distribution in LLC #1, which would decrease your basis in LLC #1, then a shareholder contribution in LLC #2. 

I assume that although you took on a pretty big project in a new area making you essentially a 'newbie' - your previous BRRRR experience definitely must have contributed to the success on this project. 

Then comes a technique known as cost segregation - the specialty of couple people who contributed to this thread 2 years ago, back when the new rules were very new and not well understood. 

Investors have a personalized online portal where they can log in and see all of their investments, capital contributions, distributions, quarterly reports, K-1s, emails, etc.  

What they have done with the LLC is pushed the custodian into a background role - simply documenting the IRA's single investment of the LLC, doing annual reporting and acting as gatekeeper for contributions, distributions and plan-to-plan transfers.