Most already overcomplicate their entities.

But this isn't an issue that an insurer covers - they do not indemnify a homeowner for some other entity's issue.  

You obviously need to protect yourself in this industry, and not running title or sending money to any person/entity outside of escrow is one of the primary things is a big no no Sure, but a rich mentor who needs to borrow $100,000 against his own property?

"In no event shall Qualified Intermediary be liable or responsible to any person or entity with respect to any action taken or omitted to be taken by it under this Agreement or at the direction of Exchanger.

If you're talking about available financing options, there are business purpose loans (like the debt service loan I mentioned) that sometimes ONLY allow you to close as an entity, like an LLC. 

@Khadijah CelestineIn theory you probably could wholesale to an entity that you own, but it wouldn't serve any purpose other than to create a lot of extra/unnecessary paperwork.  

Most importantly, the final page has an "authorization to release information" form that is signed by the applicant, authorizing various entities (primarily landlord/employer) to speak to me and confirm various details.

So, what I do to satisfy both the financial benefits of utilizing leverage AND the psychological benefit of being debt free is I only have mortgage loans in which the property is the sole collateral with no liability to myself or my entities.  

I know most residential lenders won't lend to an LLC so my question is should I just house hack the way anyone else would, using my own personal financial status and name, my own funds for the downpayment, and put the multifamily entity and principles aside for now.

Most sales are done through an entity transfer, in order to avoid having to record an actual sale price and being reassessed to full purchase price.