As for how best to structure the entity (S-Corporation versus LLC partnership), an S-Corp will probably be best for your partner, considering his whole source of income is from this activity.

He will be building plans and I would like to go to corporate establishments like Subway, Starbucks, Dunkin Donuts, Bank of America, etc  to let them know we will build our store fronts to fit their requirements.What steps do you recommend I should to get these kind of tenants.

I am also planning on leaving the corporate world very soon. 

Unless you are into masochism, eliminate the ones with mortgages encumbering more than half the current value in order to narrow your list to a manageable number.Determine current title and eliminate the corporate owners. 

E's and depreciation schedules (form 4562, I think) from the seller (or the equivalent forms if it's a partnership or corporate return).

It seems as though if not now soon the tax regulations for llc will require payment of self-employment tax.I think I can avoid this by setting up an "S" corporation for the entity that "holds" property.

In the NVREA Nation you will find experts in flipping, wholesaling, Corporate & Tax advisers, HM Lenders, GAP Funders and a group that is 5000 people strong willing to help each other be successful.

I wanted to do this for 2 reasons:  It seemed like there was less of a chance of piercing the corporate veil if I was not on the note or the deed of trust.  

Then there is the potential need to set up a trust or a US corporation. 

My wife and I are both employed elsewhere so we are not intending to pay ourselves from real estate investment, only looking to build a profitable portfolio.I think I can avoid self-employment tax by setting up an "S" corporation for the entity that "holds" property.