Also, with the investment, is there a monthly ROI or is the money simply held in the syndication?

I warn all tenants who give me whatever story on why rent is late or going to be late, that they will be getting a POQ notice on the 3rd day and a late fee on the 5th, I don't care if it's because their employer burned down or thieves stole all their money or their grandma needed an emergency appendectomy.

It’s easier than hiring a company to take all of your money

@Josh Kliethermes most likely you either can try to retain the earnest money (emd) or you might be able to hire an attorney to sue for specific performance.  

If I have saved roughly $15-20K of my own money and have about $60K in a HELOC, which should I use first?

Opportunity cost is the name of the game, in a fiat system where we create money out of thin air; Money now is more valuable than money in 30 years.

So, for a cash sale of $27,500 you might give an earnest money deposit of $1000 making that 5% fee $50. 

He had the money from a house sale.

If the partner is simply lending money that will be paid back with interest, then having them in an LLC can be a problem.

@Alan Mills First of all, are you sure you are saving money by not using an experienced attorney?