The valuation of the property in the LLC is a RE appraisal question contributing to the overall LLC value.

We know there is a lot to learn from this community and eventually look forward to contributing!  

You can also check out specialtywoodworking.com (the company I work for) to check out some of the work I've contributed to. 

@Ken GoodmanThere're more than 20 accountants contributing to this forum who specialize in REI.

I would miss out on the 5% match to my 401k but still contribute 5% myself.

These are the type of questions I would ask and determine the future value of the business and what contribution you are giving to that.

Meaning, if you're not compliant you can do things like inadvertently take a distribution that would give you a tax hit, or go above your contribution limits.  

There would be a minimum of 1 property purchased per year for 3 years, and the profits from each property would not be available for withdrawal, and would just contribute to the funds future of investment.

I would say that “friend” LLC has some sort of debt in Property LLC and you and the “friend” LLC contribute the same amount or appropriate amount for the amount of equity.

At least with my company 403b I am allowed to use those funds, which I don't pay taxes on, to contribute to that account.