I'm new to investing and decided to go this route because I recently went through a major layoff in corporate America, and I finally had the opportunity to do something that I was passionate about.

we need your help to choose the business entity that is appropriate to our goals in REI. my partner and i are focusing on multifamily home rentals with sec8. we are trying to build passive income and maybe do flips on the side in illinois where we reside. do you think we should incorporate our business name with LLC or S-corp?

More passive, more bang for the buck, and very tax-friendly - the IRS gives people more financial reward to be property investors than any other investment.To incorporate your potential love of flipping, I might suggest finding distressed properties, fixing them up, then renting them out.

If you need to see some language to incorporate into your own documents, your best bet is to speak to a Real Estate Attorney. 

Of State office and find the incorporation documents which should get you to a corporate agent or rep. for the owner.

Depending on the state you incorporate in, LLC's are dirt cheap compared to the potential tax shelter losses and expose you have by not using them. 

I am strong in finance/accounting (not a tax person though) and love spreadsheets as I used to work in corporate finance.  

Just incorporate that fee into your numbers.

if the buyer does fund the transaction, how do i go about incorporating my fee?

Both pros and consPROCESS MANAGEMENTHave punctuated check-ins to prevent expensive reversals of major work (closed walls, etc)Some incorporate 12–13 check points for renos (dry wall, plumbing, inspection, etc)Include others on team as needed like architect, structural engineer, designer = creates system of checks & balancesGCs may oppose very specific timelines since much uncertainty with availability of sub-vendorsManage timeline of how long different team members stay on, e.g. architect may only stay on through primary buildIf GC is already working nearby on another property, reno can move faster by limiting GC travel time from other jobs, etcContractors not always great project mgrs — CDP reviewed manpower & timeline plan with GC, and gave input that took multiple wks off project timelineBe particularly present around property for finishings, and KNOW your preferences (outlet placement, etc)A good GC is very adept at managing inspections — knows what inspector is looking for, avoids common pitfallsKnow your “snowball” problems (e.g. one bad decision upfront impacts MUCH future work)MISCELLANEOUSFor foundation, can have slab vs stilts / raised — slab tougher for work like plumbing since limited accessWhat permits / processes can you look up and manage in advance / get started early on?