It would be much cheaper and easier to borrow  against a different property. 

Real estate has unique tax benefits, such as depreciation and 1031 exchanges, which can help lower taxable income.

Who knows where these REIT's/Sponsors will be several decades from now, or if they will even keep these specific REIT funds open for that long, forcing us into a taxable event. 

Renting an AirBnB usually is a better deal for them than a hotel because they get a whole house for around the same price or cheaper. 

The taxable income from the LLC passes through to your personal tax return via a IRS Schedule K-1 and you include the income / loss on your personal return. 

If it is a brand new entity with 1 to 2 bank accounts with no credit cards, it might be cheaper. 

I'd bet any local University has classes applicable to commercial RE investing and management, audit the course instead of attending for a grade, much cheaper

@Shivam Patel, Contributions into and distributions from an LLC are not normally taxable events. 

Why add an ADU if it can be purchased cheaper?

Another thing to note is that the land bank has a ton of cheap property but they are not worth investing in even though it may look enticing because they can be much "Cheaper" but the ROI is not there unless your a heavy cash investor with a ton of experience basically building from almost nothing.