Now interestingly enough, the WY trust can form a separate WY LLC (call this Asset Island).

Money is still cheap and in abundance right now. time to do a crowdfunding project, become developers then form a REIT.

That's a big issue and needs to be in writting since you intend to form a partnership. 

But, if he stays on the loan it isn't an issue.I usually form a joint venture agreement with the partner.

ZKeep in mind that it's very competitive right now with Hedge Fund money out there.A much simpler way is to buddy up with a friend or a group of friends and form a Joint Venture that buys the building using your own money.

PM charges for turnover are not cheap and pro forma usually underestimate true bills.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

I recommend you review a copy of the pro forma contract for sale and purchase and be sure you understand it's terms and conditions. 

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

I've decided to form a single member LLC (I'm aware of the negatives in doing that).