Buy and Hold Rentals and Performing Notes in same entity?

[Jeff V.]

I have an existing Buy and Hold Rental business, but looking to expand into Private Lending and Performing Notes.

The question I have is, is it typically ok from a tax perspective to hold Rentals and Notes in the same entity?  Just getting some feedback on any potential issues that would arise from doing such a thing, or is it typically best to keep them separate and have an entirely different entity for the notes/lending aspect of the business.

Thanks,

Jeff V

[Carl Fischer]

@Jeff V.

I keep property and notes separate. Not from a tax perspective but a asset protection standpoint. Rental property has liability risk.  Notes for the most part do not have much risk or liability. If I am foreclosing on a note/mortgage I move it to another entity because it will change to rental property with risk.