Being a Private Lender...

[Account Closed]

I'm working through a broker that does all the underwriting/paperwork/recordings/foreclosure (if need be), where I only need to fund the transaction acting as the private lender on the note & deed of trust.

I personally don't want to lend out of my personal name since anyone can do a public search to find out how much $ I have in the bank. I've also been reading that lending from a LLC won't be a bad idea for asset protection (outside liability).

What entity have people been using for private lending, or are there any recommendations?

Are there any other considerations to factor in?

I understand that the interest earned is fully taxable. Is there any way to reduce my tax liability? I'm not a tax guy by any means but would it be advantageous to do private lending from an LLC that owns a rental property?