And the cash flow that I actually got is far less than pro-forma data. 

If the site is not zoned (at all or as lots), you have land that needs work that can include, annexation, zoning and preliminary and final plat approvals to meet the permitting authorities definition of lots and shovel ready.In any event (whether or not you own or hold the right to purchase the property), the only way to answer your question about the best choice for your partnership on an informed basis is to run pro forma analysis on your alternatives.

Even if he doesn't intend to sue you, his insurance company almost certainly will (called subrogation).If the house is in your name, they would be sueing you personally, and going after all of your personal assets and income...anything that is in your name is fair game.If the house is in the name of your LLC, they can only go after the LLCs assets.Many people form a different LLC for each property (or every 3-5 properties) for this reason.Similarly, if something like this were to happen, you might have the option of declaring that particular LLC bankrupt without affecting your personal credit (personal loan guarantees notwithstanding), and you might still have several other LLCs that are still operating and financially sound...the bankruptcy of one does not necessarily affect the others.So it's a matter of not putting all your eggs in one basket (and not mixing personal eggs with business eggs!).

The pro formas looked good, the rents looked good, the purchase price seemed fair...

Eventually you find that properties in each market, or zip code, or even group of blocks, form a pattern.  

We form a single purpose LLC for each asset we purchase and then divide up ownership percentages based on contribution.  

Etc, and so on.If you're a good people person, and can form a rapport it will go a long way in making negotiations for the purchase of this property seem like a breeze.Do a forum search on BP for seller financing and see what other people have put together. 

You personal credit is very important, too, so keep building that.Brad, when you form a new corporation, which is what an LLC is, one of the necessary steps is to apply for an EIN.Sometimes it is referred to as a tax ID number.

Running cashflow projections and pro-formas was straight forward since most of these properties could be conventionally financed using 15 or 30 yr fixed rate amortization schedules.I'm curious how other's are evaluating larger multifamily properties using Balloon and ARM loans.  

Me and Alfred (rehabber) started to form a relationship in December right before I got this deal locked up.