Both LLCs have the same shareholders.

So future capital raises can be done at your own terms and partners or shareholders are based on how much of your corporation they own. corp should also do separate LLCs on specific projects without selling an interest keep your Real Estate projects separate from corporation ownership. https://www.startengine.com/ms...

That feeds into the second advantage: willingness to take more risk and their shareholders get this, since they only do this one thing, they don’t have to worry about messing up other parts of the business.

Every Coop has their own rules, most Coop dont allow shareholders to rent out their unit and the few that do will have restrictions. 

To what extent will the parties be free to carry on other businesses - while the joint venture subsists- if one party pulls outIs it intended that spouses/partners should also be shareholders, to allow for tax advantages from a broader split of dividends?

I am considering incorporating and having us 3 as directors but only the investor as the sole shareholder.

Then using the excess $2M to pay back shareholders while the property was spinning up.3) Am not crazy about interest-only loans since a good way to build equity (in case price appreciation doesn't meet your standards) is debt reduction.4) Some leased buildings were really sold on pretty shaky leases and neglecting the $/SqFt. 

I haven't been to a shareholder meeting yet, but I sure hope I can make it there sometime while Buffett and Munger are still running it. 

Make sure you treats those as distributions to shareholders/members and don't run personal expenses through those bank accounts.

Worse yet you are a minority shareholder in the property so you cannot force them to sell.