Would this allow me maintain all financial decisions regarding the asset, without risk of getting sued or removed from the entity?

Which allowed me to 1031 into bigger assets later without worrying about taxes. 

A key difference with section 506 investments concerns the products themselves: they are not regulated by the SEC and Investment Company Act of 1940 which governs stocks and mutual funds.  

Otherwise each sale will be it's own exchange with it's own calendar and reinvestment requirements.But it's perfectly fine to combine two 1031 exchanges to purchase one larger asset as long as the valuations work out. 

@Kyle Ferguson If financing is your issue, network with a successful mortgage broker who can is knowledgeable about the various products available to you in your area.

A simple one is to help protect your assets from the risk of lawsuit.

You are putting 100% at risk for an asset that isn't cash flowing. 

Or unless you just have a great relationship with the lender that they will just bypass that process and give you money based on the asset. 

The $40,000 was created from money in my asset column in the form of a promissory note from the buyer.

That being said, for bridge products you may not need 20-25%.