That's their new structure.

We are also part owners in a small commercial property (also structured as an LLC) also based in NY.

Instead of me giving a down payment, seller will finance the 300K in 5 years and we want to structure the whole 300K as a interest-only loan .

Depending on how to structure, you take title on the house at the closing or you take the title when you paid in full at the end of installment sales.  

It's also common to encounter retail branch employees who are  not familiar with  the entities and various ownership structures real estate investors utilize since they are normally opening personal bank accounts.

How many books do you think you would need to read before you become a structural engineer?  

This particular JV was structured to encourage a quick turnaround by increasing the rate of return if not completed and on the market by month 4.

We will be structuring our deals as  506c meaning only accredited investors can partner with us.

The key is to have a team in place that performs for you and that you trust...no matter how you structure it.

I will structure my deals to have a clause where investors want to hold for a longer period.