Always consult with your attorney before you rely on the above information.

If you are dealing in retail or larger commercial projects, a NY attorney should be able to help you as long as they have what we call a "local counsel" consultant or a member of their firm with some knowledge in that State, which most commercial lawyers do.

Also, to be safe, you should consult with an attorney familiar with RE laws to make sure you do your deals legally and that your protected.  

If the LLC is taxed as an S Corp or C Corp, running payroll for your dad and issuing him a W-2 becomes possible.Best to consult a tax CPA/EA who will examine all facts and circumstances.

I would advise anyone looking to do this to consult an expert because it’s not that simple, nor is it something you can jump into and figure out later. 

Note, however, that if you are attempting to raise capital from other investors, a QOZ Fund is classified as a security, not a real estate interest - it is highly recommended to consult your CPA and attorney before raising capital from others.If you invest in a QOF fund that does not adhere to the up-front or on-going requirements, an investor potentially opens themselves up to taxes on the previously deferred capital gains/recapture and potentially to penalties. 

@Alexander Ransom - In the past, we have also treated each new situation and case as an opportunity to learn, meaning we did our research ahead of time (like you), and when a troublesome situation arises, we try to handle it ourselves based on the knowledge we've acquired, instead of hiring out every possible person that could get involved (property managers, attorneys, consultants, etc....).

To make the loan secured you need a deed or trust or a mortgage in addition to the promissory note.You should consult an attorney to make sure your IRA interest is protected.

I know this is probably a question for an attorney and I do plan on consulting with one and getting everything nailed down before touching their money.

You do NOT need an in-home consultation.