In addition it gets more complicated because you invest in a LLC that then will  invest into the deal.  

I'm the President/CEO of Universal Son Enterprises LLC. 

When does it make sense to invest through an LLC vs.

If I lend money to a flipper operating as a corp or llc, do I have to issue a 1099 or 1098?

Another way is to use an LLC and admit the BP member, use an Operating Agreement, convey capital/equity as earned income to the BP partner.

Regading LLC.

Once fixed we would rent with a minimum goal of $750 per month in rentWe would refinance property once rented (up to 80% taken out in equity ) and keep property in our LLC as rental.Possibly let investors have 20% equity stake in each property ownedI would like feedback/suggestions please.

I also invested in my wife’s dream and we opened a high-end preschool, which she managed.Things were going great until a series of cascading life challenges fell upon the family.

And if he's doing this as an LLC member, I believe he would have to register with CA (and pay the $800+ annual fee) for doing business in the state.

The rest is just ethics which no LLC operating agreement can replace.