@Rob Hakes I'm currently investing with Holdfolio and their distributions are taxed as partnership income on a schedule K-1. 

Also, if you transfer property with a Quit Claim Deed you'll lose title insurance.There are other things coming into play with an LLC - financing and DOS, distribution per LLC (how many houses per LLC), insurance, maintaining the LLC, etc.

And we'll still do a 50/50 split on the work we put in.Given all this, how do you think we should handle the loans, profit distribution %, and our partnership structure (tenancy in common or joint tenancy or LLC)?

My understanding is that interest income derived "in the ordinary course of a trade or business" is considered business income and is subject to SE tax.

It will be the profit/loss as calculated on your 1065 partnership return in your case and as distributed to your two personal returns.This isn't a trust. 

That's getting into the 75-75-90 rule for REITs:75% of the total assets must be invested in real estate75% of the gross income must come in the form of rents from real property or interest from loans on real property90% of taxable income must be distributed in the form of shareholder dividendsThe last one leads to REITs being one of the higher dividend paying sectors in publicly traded equities.

I have a quad that has a 3/2.5, 1/2, 1/1, and studio each assigned a unique percentage that I derived trying to be fair as I could.  

You could control the product, processing and distribution.”Then he added, “Of course, you would need to leave this small coastal fishing village and move to Mexico City where you would run your growing enterprise.”The Mexican fisherman asked, “But señor, how long will this all take?”

Chewy, FedEx, Dollar Tree, Amazon, Autozone and others have invested in large distribution centers here in Ocala. 

I can't contribute more money at this time so have no choice but to be in "default".Besides not being able to collect distributions, if the project goes under, will I at least be entitled to my original investment amount if there are funds left over to return investor capital?