If you’re “uncomfortable” with $16k in debt, you’ll probably be very uncomfortable when an opportunity arises to invest $100k and take on $900k in debt for a $1 million acquisition  that has the potential to supercharge you’re wealth building 4 times.  

However, if this is a true "joint venture", all members must be actively involved in generating their own profits so the credit partner would also need to participate in decisions regarding the property such as which contractors to hire; handling issues that arise, etc. 

Where the problem arises is if you buy it as your primary residence (ie put 5% down) and then don't move in.

When challenges arise, it can be hard to remember how many AMAZING moments there are in Real Estate.

This is going to mean more homes closing faster and more closing means more comparable sales to trigger a rise in homes prices.

Meanwhile, they form LLC's in preparation for when claims or conflict will arise almost as if there is an acceptance this will occur. 

This is why you have an attorney review your contracts - so they keep you out of issues that could arise because of one-sided agreements.

Hopefully a logical answer will present itself once all the problems arise.

If a legal issue arises, only the assets owned by the LLC (the rental properties) are at risk, not your personal assets.

We can lend to series LLC's using commercial DSCR loans but it seems there is always some issue that arises.