If I ask friends to invest I me what do you think fair compensation would be?  

You got a good thing potentially if you play your cards right imho

How exactly should I set the terms of this partnership & how can I make this fair for both parties?

UNLESS you think there is going to be some VERY significant appreciation at play  ..you may want to talk to your accountant before you do that.  

In order to be recognized as a rental activity with operational losses, you will need to rent it to your S-corporation as the fair market value.

The books that have helped me the most so far are the Rich Dad Poor Dad books, and playing the free version of his game CashFlow online.

I played for the New England Patriots and now I own my own Insurance Agency.

If you are offering nothing to yourself as the sponsor then less motivation to find great deals.Essentially you would be playing with people's hard earned money to try and gain some experience which would likely be bad.Why not intern while in school at a commercial firm that has a fund or is syndicating with a focus on their capital raise department?

So when you do see something and try to make a play you are being realistic.Good Luck!

Find short sale listings you are interested in and place an offer at a price below fair market value, that cash flows, and/or has value add potential.Best of luck,