If it's a layered LLC, most lenders will need to trace a warm body on the operating agreement which will involve a bit more paperwork trail.

Quote from @Travis Biziorek: I own and operate a STR in Detroit and this is the first I'm hearing of this regulation.I'm not convinced it exists.

Quote from @Jaycee Greene: Hey @Daniel Stegelman, how much are your operating expenses?

That part is not as straight-forward.Such operating agreements are frankly costly when done correctly.

The most important part of a syndication is the person and company that is operating the syndication. 

So you still need to sign.Have you provided them a copy of the operating agreement of the LLC, certificate of good standing etc.

Are there any insurance companies that people would recommend for this investment strategy that do operate in the Austin, TX area?

Non-profits and/or sober living operators may also be interested, depending on their needs.

Yes this is a Refi on a commercial property with additional large cash out included for sole purpose of reinvesting into another property, as well as a large operating line of credit in addition to the Refi is included.

We are going to be operating separately from the school.