If you want someone else to put up the money you need to provide significant value to the transaction.

He says he would provide me with a 1099 and he has to do it this way because the seller insisted on using their title company and the title company would not include the assignment fee to the transaction.

Changes some of my answer below, but here would be most of the types of transactions you would have in these accounts and between them.Property transactions would be: all property specific rents and expenses, allocated expense transfer to the master LLC and transfers to master LLC bank account for profit AND/OR property management fee.Master LLC transactions would be: Shared expenses going out, reimbursements/transfers from properties for their allocated share of those expenses coming in, the transfers from your properties deemed as profit AND/OR property management fee and then transfers to your personal accounts deemed as owner distributions.Other transfers that could occur is if the master LLC needs to transfer to the properties for capital expenditures above and beyond the reserves you might leave in their accounts.

I imagine you may be in for a surprise here in IL with how real estate is transacted.

I wish I discover BP when I first started investing then I wouldn’t have made some of my mistakes.Honestly though, going through the transaction itself will teach you a lot.

This is transactional funding, seller has vested interest in helping you.

In particular:(1) Should I hire a law firm or collection agency to facilitate the transaction?

@Muhammad Kashif to avoid interest related transactions:1) Buy & hold rentals - you make your money back via rental payments.2) Funding flip deals - instead of lending at an interest rate, you could lend for a percentage of the profits on the sale.

We’re one of the few property managers that require W-2’s and a bank statement and we go way beyond the traditional, “income must = 3x rent” qualifier.Below is more information about what our Applications Department does to screen applicants and find the best tenants possible for your property.Required InfoWe require the following from each applicant over the age of 18, that is not a dependent of another applicant (as evidenced on a tax return):Copy of acceptable state picture IDRecent YTD paystubRecent W-2Recent Bank Statement, all pages, no info blacked outRecent tax return if self-employedApplicants are often slow about turning this information in, asking us why we need it and then taking several days to submit.

But there is nothing like real world transactions to learn for real....and to do that you'd need a Broker and you'd take on all of the overhead costs.