If I had a large amount of liquid capital, do you think I should use it to purchase fixed assets or for some project development, which would be more suitable?

However, if you are an out-of-state slumlord, you can now pass 100% of the financial and legal liability of maintaining a property onto some poor local.

Best financial move I made. 

Here are some thoughts on effectively managing these relationships to ensure all three stakeholders feel valued and respected.Stewardship of Owner FundsProperty owners entrust PMs with one of their most valuable assets, and being good stewards of their funds is paramount.

@Denise Lang some copy & paste thoughts:TYPES OF RENTAL INVESTMENTSRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

In real estate, I believe its the opposite because its based on Assets and good deals will make money.

You will always have to be an asset manager of your property manager as your property manager is not a mind reader for your investment strategy decisions. 

For example when someone wants to have financial freedom and spend more time with family, but then sets a goal by creating a heavy active income stream that involves their personal involvement daily.

However, it seems extremely high risk as, to my knowledge, it is unsecured and only backed by a 'promise' to repay not any hard assets or relevant collateral.    

I've done this with my properties because I'm well known in my small town and don't want people to know what I own.LEGAL PROTECTION: By placing your assets in an LLC, you are legally separating them from your personal assets.