Here’s the answer: It’s not uncommon for a person to want to protect themselves when in a group of people and use an entity to represent their investment. The individual(s) may have other personal duties, like being on an advisory board, or being an officer. Sometimes groups of people will form an entity to control what happens to their proceeds from an investment rather than giving the entire group optics into their sub-arrangement. So it can frequently be worth the extra overhead for the additional entity. So a typical structure is an LLC to hold the property, a manager or group of managers, and then the Members, who may all be individual, or may be groups of people in various entities.