There are a lot of "rules" that sometimes change every year, so your CPA/tax guy needs to be current in his/her knowledge about this area.Lastly, I don't think you'll need a business license, but you should check with your local city and county offices on their rules.

His idea is creating the LLC and then doing a business loan, however he does bring the knowledge and the ability to flip the properties. 

More important than money is knowledge. 

I have time after work and I am looking to trade time and work for knowledge.

I would second what the experts abover are saying.

This should be an automatic/easy vetting to make sure an agent isnt just telling you they are a mulit-family expert. 

Do you have the means/knowledge/opportunity to put it to work at a much better ROI than the 30 year loan rate of interest, plus tax and inflation?

Account ClosedI'm no expert in notes so take my advice with a grain of salt, but here's an idea... 

What you learned about tenant in their background check or due diligence is for your knowledge and decision making.

Setting up an Operating agreement, can this be done online through a template or do I need outside help from an expert?