I may get badgered here, and I apologize if this may be seen as politically incorrect, but good for you... this is the exact thing we see in the bible, and in our church all the time; people who messed up, cleaned up, and were given another chance.

From my understanding, LLC's and Corporations have different tax requirements.I'd prefer to avoid both downtrodden and luxury real estate. 

As for S-Corp or LLC just remember that you a group of investors and you need to protect the individuals and I personally believe that an LLC with good insurance on everything separately is your best idea.

Find yourself a lawyer who specializes in corporate law ... a thorough operating agreement is a pretty boiler plate document.

If you hold the property in your name, they will want to see your tax returns including form T776 for the past 2-3 years.If you hold the property in a company, they'll want financial statements for the company (minimum) and possible corporate tax returns as well.  

The IRS website mentioned something about applying to switch back to a corporation status instead of being a Partnership.  

I would connect with some wholesalers in the area.Also, there are some alternative ways to invest in Real estate for a big return.. for example, there is a desperate need for corporate rentals (furnished short-medium term leases) that pay 3 times per month what a traditional lease would demand.

I made a vow that I would keep my current career for now and use the next (x amount) of months or YEARS to develop my financial literacy and come up with a plan to get out of corporate down the road.

Keep things simple, keep things clean and politely say no.

It is correct that you will not be able to get away with just moving the loans to an LLC as it will show up on your tax returns.One option could be to form a corporation (C, or S), and take the money out as a W-2 salary.