Or are there related party restrictions on the exclusion tax benefit? 

Most banks have restrictions and a Clause where the mortgage/loan becomes "Due on Sale".The biggest benefit of going from personal to LLC is to protect your assets against a law suit due to an injury or death by someone renting or using the property.

I can't find a bank that wants to build a relationship with me even though I have been successful in every project I have done with private money.Its sad banks are so restricted.

Personally, I think it’s important to continue to stay creative and generate new ideas on all facets of the business as legal restrictions continue to present themselves.Have a good one!

It should take 5 minutes and $3-5 for them.I find the intake/filter thing VERY odd. 

If you want to invest a privately owned firm may be the way to go as they have less of a corporate structure setting restrictions on you.

There have been a lot of restrictive laws passed in the past few years in Colorado.

@Jacqui CaseyAs others have said be aware of HOA rules that might restrict STRs. 

I was thinking about selling blocks of investments into the project of 50k increments and it being set up like a real estate trust/ private reit without the restrictions. any advice on something of that magnitude with multiple investors since it couldn't go forward until all blocks were filled. 

FHA can have other restrictions on condition as well.