Normally you would each get a K1 based on your percentage of ownership of all the properties in the LLC - but it is more complicated if they brought you in and didn't set up a different LLC for the ones split by 3.  

I have found the ownership of industrial property to be very hit or miss.

I am prepared to walk away if that's the prudent decision.FYI, this is for a Buy and Hold, not a flip.Here are the vitals - let me know if I have missed anything:Asking price: $100K (this is an FSBO, I am working with a buyer's agent)Our offer: $90KEstimated Repairs: $5KClosing Costs: < $1K (we are paying cash)All-in: $96KARV: $125KEstimated Rent: $1,050 - $1,150 (but based on rental comps, $1,050 is on the very low end)Property Taxes: $1,178/yrInsurance: $750 - $850/yrThe property is in a great neighborhood with pride of ownership, excellent school district, minutes from shopping, a major state university, etc. 

Trusts can be useful to as well to keep ownership private and separate during an asset search to determine your net worth.Umbrella insurance is another tool.It's a pretty common concern and there are effective ways to address it.

As for Rich Dad companies... you can try to figure out their convoluted ownership schemes in this SEC document (exhibit B): http://www.sec.gov/Archives/edgar/data/1095276/000101968710002457/tigrent_sc13d-062810.htm And after that, it appears Rich Global, LLC filed BK in Wyoming bankruptcy court: http://business-bankruptcies.com/cases/rich-global-llc with creditors that include Arizona Department of Revenue and the IRS.

In 10 years of rental home ownership I've yet to meet one tenant with any significant cash reserves.

Reverse engineer them as to ownership, equity and status of title.

This is an interstate offering that was fairly straight forward with an outright ownership of a property.

As you acknowledge, you're actually buying an operating business, with property ownership thrown in.

Of my 2 rental condos in FL, one had already been upgraded prior to my ownership with stainless steel appliances, granite, tile floors.