Looking for perspectives on setting up JV for note purchase

[Bob Malecki]

I've got a local private lender who wants to do a joint venture with me to fund a NPL. He's funding the deal and expenses, I'm doing the diligence, acquisition, workout, etc. We then split the profits.

This may turn into a multi-asset situation down the road, but right now we are just doing one note, which really doesn't justify a full LLC setup. I thought about doing this in a Personal Property Trust, but still would need to get a fed tax ID, open a bank acct. etc. Trying to keep it as simple as possible on the operations side.

Does anyone have any thoughts on a simple but safe setup? It will be my company and him personally. 

Best Regards, 

Bob

[Mike Hartzog]

Hey Bob,

This is something that I have pondered too.  I ended up creating a separate business entity, but I suspect there is a better way to do it.  I would like to look more deeply into using a Series LLC for this type of thing.  I think there is inherent risk in doing this within your existing entity, primarily because if things go wrong and your partner sues you, the assets of your current entity are exposed.

Mike