My lender had suggested I receive a gift for the down payment.

This is my plan; I plan to receive a gift from my parent which I hope to use as a down payment for the property.

You could split the income and expenses 1/3 each but another issue I want to point out is that when your father added you and your brother to the deed, he made a gift.

Inherited property, gifted property, that sort of thing.

You grandmother might have to pay gift tax on the equity.

It either has to come from your own resources or be gifted to you.I suspect it works similarly in your area.That said, there will be folks who will tell you ways to circumvent this requirement ... and it happens routinely, but in the end the lender could pull the plug on you if discovered ... or worse, the words mortgage fraud can come into play as you will likely attest that the downpayment comes from your own resources.

The title company that did the settlement offered a "gift deed" as a method to transfer ownership of the property, from my wife and I to the LLC.

Unfortunately, unless the money is gifted, it is not as simple as them just writing you a check.Passive investors receive at least 50% of the deal, and usually even higher based on your experience level.

@Robert SegerThe person giving the gift has to worry about the tax.

Here's something you don't see every day: https://www.seattletimes.com/business/real-estate/free-rent-in-seattle-no-catch-a-landlord-couples-faith-inspired-a-gift-for-tenants/