Investing in Note funds - use LLC?

[John V.]

Hello all, I am considering investing in a note fund such as PPR's offerings (not in notes directly at this time). Those of you who are doing this, are you doing so directly or have you formed an LLC or the like to do so? Is this advisable? Unnecessary? This would not be for a SDIRA, etc. Thanks!

[Darren Eady]

@John V. I have seen many people create an LLC for holding performing notes, but it seems somewhat unnecessary to me as you typically do not need protection to hold an asset, only a liability. All of my properties are in LLCs, which is owned by a parent company, an FLP, but my notes have never required this protection.

Make sure you trust the fund investing in notes as I personally would rather own one note than be grouped in with a fund manager making decisions for you on what to hold.

Good luck!