Most RE project finance is either Equity(shares and shareholder loans), Debt or Hybrid(mezzanine finance,  preferred equity).Suppose a multifamily township development project has LVR or LTV of 60%, 60% debt capital can be raised, how should one model remaining 40% finance such that highest developers margin can be achieved after all the payoffs.Thanking in advance

You've really only got three choices: equity, debt, or a mix of both.

So this would be more of an equity-type structure, which is generally going to be more expensive than debt, or a typical private money lender.My question to everyone is how do I set it up so its a good deal for both of us?

Instead, you can leverage what you know to buy properties (rather using debt or cash). 

Garrett Gunderson's/Wealth Factory has what's called the Cash Flow Index, it's helped us determine a credit card and loan payoff plan, and may be useful to help you determine your opportunity cost when it comes to paying down low interest debt or pursue an investment that may return a higher rate. 

The creditor can get a Charging Order for the debtors assets in all five LLC's2.

You can do it as a joint venture where you partner will also likely sign and guarantee on the debt, or you can have an investor provide you debt.  

The one time I talked to one, I was told they don't deal with new development of condominium complexes (either debt or equity).

You should be able to easily identify the true judgment debtor (as well as prior owner) and clear the title issue in a matter of minutes.If you are not in a position to use appropriate skip tracing software, you are not doing this correctly and should be outsourcing this.

Take over the payments, no new debt or cash from you, you offer some equity at closing.