Group LLC and trying to grow

[Jonathan O'Dell]

Im hoping for some help. I am a part of a group (my dad, friend, and myself) that got involved in real estate initially through rehabbing and selling. Eventually we decided to try our hand at rehabbing the property and turning it into a rental. So we got enough cash together, bought a property and put it under an LLC. The entire plan was to later take our money back out with a mortgage by LLC, and use that money to continue to expand. Long story short we havent been able to find anyone to actually lend to the LLC. Part of the reason is there are 3 of us involved, part of the reason is the fact that it is an LLC.

I have read it might be possible to set up an LLC as a management company and then just have the one of us/all of us actually hold the mortgage and then have the management company act as a shield, with each of us having umbrella policies. I have tried to read as much as possible and finally came to the conclusion that if this was being done by a single person it makes no sense, but there seemed to be some question as to if a group of people were in the LLC if this does present a good path forward.

Is there anyone that might be able to share their experiences, and maybe present a good way out?

thanks!