not to get into the math but if your putting in the equity then you need to share upside.it would be more common to have a pref return and a waterfall profit split.

now that your attorney calmed your fears just ignore the guy.. actual lawsuit is expensive.. this is what they call a saber rattler ... personally I just send one return e mail.. and tell them not to ever contact U again.. if and when he actually sues you then you can jump into action.. but until that time its just scare tactics.for those reasons I am like @Edgar U. 

When a tenant "threatens" me, I calmly tell them, "Do what you feel you need to do."

You need to know how the "waterfall" works with respect to distributions to you and the other partners, what liabilities you have for any debts the LLC incurs, what obligations you have, when and how financial information is provided, how key decisions are made by members, management authority and who has it and what it entails, how and when managers can be removed, hold periods for your investment, how additional capital calls work, etc. etc. etc.

Whoa Whoa Whoa Jared Carpenter you better calm down.

Actually taking action will calm your nerves and your sense of overwhelm, because it will accelerate the learning process, which will make you more confident.  

Consider doing the following while you wait for things to calm down at home:1)Identify you goals for RE, not so you know, but so you can communicate those goals to ANYONE.2) Clear your plans with your family (does your spouse approve of you going out for a couple of hours to drive for dollars?

My advice to you would be to calm down... step back.. formulate a plan with a good exit strategy, and then go and execute it.

There is something called a waterfall profit sharing structure.  

It was like a waterfall of sh*t that I have to accomplish asap before the 1st tenant gets on-boarded.