Purchasing as LLC to transfer to individual of the LLC for OOC.

[Joy Ball]

In a nut shell... I found a private money lender who stated he could lend on owner occupied purchases with a large down payment on our part. The property being purchased is an REO in need of rehab. We are looking to rehab it and then live in it as our primary residence. The property was sold via auction and we got the high bid. Now suddenly the private money guy is telling me that we need to form an LLC or corporation in order to satisfy the new regulations on lending for owner occupied. We planned on a cash-out refinance once the property is lendable by a conventional lender and then possibly going forward with other foreclosed/distressed properties to fix and flip. But for now, I can't hold title as owner occupied/primary residence if the LLC entity holds title. I also miss out on any tax benefits, correct? So, to satisfy the lending regulations is must be purchased by the LLC. How do I navigate through this? I just want to have a primary residence, hold title in our names and not have to worry about the tax junk associated with the LLC.