You should always protect your position, make sure everything is in writing, and don’t hesitate to explore the full value of your deals by marketing to other buyers.

Quote from @Scott Tennell: For real estate investors who have worked with private money lenders, what strategies have you found most effective in structuring deals to ensure both parties are protected and the funding process runs smoothly? 

That's a way to get both anonymity and liability protection.

They are my favorite, because they are cheap and snap together higher, which better protects from splashing water.

The tenants in the 3 bedroom rental aren't in a protected class but I do not want to get in any kind of legal bind. 

So I'm guessing it might depend on your state laws and personal situation. and make sure you know of any sticky items that would eliminate the protection you get from the LLC.

If you added in the cash you should have to protect against contingencies, the actual return goes down (or the risk sykrockets, your choice)- If the $300K properties cashflow, definitely a better bet. 

Exactly that’s why I’m trying to figure out a way to take ownership or protect my investment as I’m taking over payments and do not wanna leave it under their name as they can just come back and take it

what kind of investment was/is this  a little more detail may protect others if you think this person is a financial predator.  

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.