They can coordinate and supervise the project, protecting the owner in a variety of ways.

I post frequently about the unnecessary complexities of most real estate investors asset protection structures and the point I normally emphasize is the lack of attention placed on the day to day operations that are far more critical to reducing liability exposure.

For example: your current interest rate, rental rate, expectation for appreciation, tax benefits, leverage and inflation protection. 

Liability Protection Asset Protection: The primary reason for holding real estate in an LLC is to protect your personal assets from liability.

Example:-------------------Tenant A - Grandma Millie's Sewing ShopBeen in business 1 year, decently profitable, signs 5 year lease.Rent = $60,000/yearTenant B - Eye Doctor office.Been in business 5 years, quite profitable, signs 5 year lease.Rent = $55,000/yearTenant C - Subway5 year leaseRent = $50,000/year-------------------If I assign the following Cap Rates, I get these building values:Tenant A / 10% cap rate60k/.1 = $600,000Tenant B / 8.5% cap rate55k/.085= $647,000Tenant C / 7% cap rate50k/.07 = $714,000(or even $45k at 6% cap rate = $750k)-------------------I just made up all of these numbers.  

Make sure the family is good on this transaction happening at the right price, it could get uncomfortable if your dad gives it away to you in the eyes of the family.

This structure provides a way for us to be involved, be protected, and most importantly, build relationships.

And one area that I’m keeping my eye on is Franklin.

LTRs may face eviction issues, their consistent income makes them less risky in the eyes of lenders.

It would most likely not give you asset protection since its a non-arms length transaction.