An LLC can offer an additional layer of protection.

By forming a LLC you are adding one more layer of protection between your business and personal assets.

Cash Flow properties are vital to your Real Estate investing endeavor.If someone is willing to lend you the money to purchase the property under your name by all means go ahead and borrow the money and occupy it. then refiance to conventional loan. 

Dave,I have layered entity structure. 

Although this puts another layer of detail you have to plan for, it might help you address your concerns.

On a roof I've always torn off completely before reroofing and it is now code here in Florida that you can't go over any previous layers (you used to be able to have 2 layers).

It feels like there might be an added layer of risk for him, vs investing directly with the operators through his own LP. 

stucco does well over brick. so does another layer of paint. you can remove it all with stripper. call some painters and masons and see what it will run you.

If $500 towards a deal is a "carrot" for consideration, other vital issues/barriers exist to funding a good deal. 

Trusts are very useful in a number of situations, especially if you are doing creative deals.As I said, not worth bothering with on your first deal or three, and I took a beating in '07 so dont have nearly the layers I did when I had 8 figures worth of stuff, but for the life of me I dont know why anyone experienced would hold any real estate in their own name with how easy it is not to, no matter how much insurance you had.I put insurance companies right behind the government and banks on people I dont like to deal with...some are better than others, and I usually make out like a bandit on claims because of how much they pay and cheap I can do the work, but I still dont want my entire net worth dependent on if some $40k/yr desk jockey approves a claim on my umbrella policy.