He has rejected larger offers and suggested I invest $5,000 for an 8-12% stake in the venture.They uses a cost-free retail space and a reliable, but paid event venue and has 100 attendees weekly.

Probably a retail lender I am guessing.

Cape Coral is a unique market in that it offers access to nearly every major investment strategy within a single market such as LTR, STR, new construction development, land banking, retail/commercial, industrial, etc.

I was also researching on Johnstown, PA and what are the main industries (sources of employment) there and is the population growing or steady etc.

I am currently a commercial retail tenant agent, have one rental property and am looking to grow my portfolio. 

Requirements for becoming a lender will vary from state to state, but at minimum, whomever operates/manages the company will likely have to meet industry experience requirements and will need to meet capital/bonding/licensing requirements specific to Texas.

Yardi-Voyager is relatively ubiquitous in the industry, so this should be easy.

I just want to know if there is an industry standard or convention in this situation for how these things are divided up between the PMC and on-site management.

My initial plan was to buy homes at wholesale price, fix them and retail them through an agent.

I would like to address the concerns that you brought up and hopefully help clarify any confussion and see if you are still in the industry looking for financing options.