Here is the example that I'm thinking about:I form a partnership with an out-of-state family member who agrees to put all the money down on a loan for a 50/50 split.

I called him a few days later and it went to voicemail. 2 weeks later, he sends me the marketing package with pro formas.

IMO, that's a break even deal at best, and most likely losing if you run an honest pro forma with 40% expenses and a mortgage payment. 

The owners have priced it at a 6% pro forma cap rate assuming the last unit gets leased out at honest current fair market rates ($2.75/sf).My question to you all is what are you seeing/expecting in terms of trade caps for comparable property in comparable markets?

Then on the resale you're likely going to be selling to a savvy investor who will want to negotiate a discounted deal and you'll likely have an selling agent who will need to fudge the #'s and the pro forma in order to try and get the deal done. 

I get contacted every week and sometimes every day by different buyers wanting to form a relationship.

Generally speaking, SEC compliance is not an issue if you're looking to form a small LLC with people already known to you. 

But I would guess you probably don't want to form a partnership (unless you want to go all out and form a limited partnership).

Maybe we can form a BP group!!

For Trust- Would LLC go in Trust or First I need to form a Trust?