Did you discover the issue during the inspection period?

It's usually the member/borrower's creditworthiness that is the issue and interferes with approval, not the LLC. 

what is my next step to clear up this issue? 

My investments were all what they termed private placement and was essentially funds used for lending, buying notes and recently land trust.After MIdland sprun this on us, my spouse also has accounts, I did some research but didn't see a purpose to remove our accounts at the time.I have not been with ET long enough to give comment on them and what little "issues" occured were technical.

Are you having issues finding a lender that can do this for you?

Flat out, I realize we're friends/family, but I need this lease in place to comply with laws that require things in writing and for my protection should there ever be issues.

The main risks I would say to watch out for are any family dynamic issues that could arise as things like this could lead to issues that didn't exist previously.

There are several other issues with this; but just know at it's core it's an attempt at tax avoidance-not tax reduction.

With the Power of Attorney, there may not be an issue. 

The only issue I've had is a small period where the laundry pods would always be empty at turnover.