An LLC is a good vehicle for many businesses, it might be applicable to RE, I know it's been done quite a bit.Consult with a Lawyer to make sure everyone is protected and you are covered for these cases. 

Buy undesirable wetlands, marshes, and DEC protected lands that could be sold for pennies on the dollar.  

It’s not a lot of security as between your second position and the first, there isn’t much equity protecting a default 

You will need to balance the legal protection benefits of an LLC (an attorney's question) against the cost, because CA will make you pay $800/yr just for having the LLC. 

You get the idea.Then, think about how much overall value and expertise and risk each person is providing and split the equity based on that.For me, the important thing is to structure it so that there are project-level expenses that accurately reflect what it would cost to hire someone to do that. 

@Gary CliseleNote funds are an excellent way for an investor to invest in notes, in a truly passive way, while leveraging the experience, expertise, and relationships of the fund operator.

How do I protect myself for properties that I have mortgages under my name? 

It's in CA, prop 13 protected, and I will never live at the property.  

Upon any complaint of a violation of this section, the Consumer Protection Unit of the Attorney General's office shall investigate the same, shall interview tenants of the landlord and shall, under appropriate search warrant, have the right to investigate all records of the landlord pertaining to applications made within the preceding 6 months.

Then I get to wait for someone to accuse of me of disparate treatment of a protected class or, preferential treatment to another class.