@Jeffery Waicak it looks like many missed that you mentioned it is your friend with the good credit, not a random agency pairing people.If you were to do something like this, I would recommend an LLC with a well thought out Operating Agreement.

Of course, you just made it clear that its not as clean an operation as I explained, but did I have the basic idea down?

I realize I can modify our operating agreement to reflect this transaction and his obligation, but it doesn't' sit the same way with me as if he were signing on the dotted line at closing.Please share your thoughts and if I am overthinking this,but if something were to go south or future disagreements I feel like I would be left holding the bag in this scenario.

Electricty, Water, Sewer, garbage, and insurance (or any others that would be operating expenses) are the areas in which I was expecting to get some assistance with.Thanks for the help

In general the site is filled with pretty independent folks that dislike others controlling their capital formation process and thus my prediction is that technology will largely allow active operator/sponsors to bypass the intermediaries in time.  

Any company operating without one will fail in no time. 

I've owned and operated a number of businesses over the last 20 years.

Use your Net operating Income to pay back the Private loan.  

It  may be invalid due to age, it may have been paid and never released, or may be gone by operation of law via the tax sale.

If so and if you want to take a salary, it will need to fall under the real-estate operating company requirement in order to use your retirement funds without paying taxes.