It's interesting what people will do in acts of desparation.In my experience, lenders (specifically private lenders) will do what they can to work with a borrower to avoid foreclosure, which is a costly endeavor for the lender and requires time to process, usually months and months, depending on your state.Also, while an LLC is often considered a safeguard to protect personal assets, a lender using an LLC for multiple loans may have a substantial value to their LLC, which could all be at risk.Finally, if the wrongful foreclosure suit is legitimate and based on an error by the lender themselves, an attorney could logically sue both the LLC and the individual.

I personally view it as a liability protection issue and base the decision on my costs to have the LLC versus the equity contained within.

Here is the excerpt from the IRS I am basing my answer off of. 

Also depends on how much capital you can raise, your experience, and what returns your investor base is expecting. 

Debt Service Coverage Ratio (DSCR) loans are a type of commercial real estate loan where the lender evaluates the borrower's ability to repay the loan based on the property's income generated.

The ownership and use periods do not need to be consecutive.Exceptions to the Two-Year Rule:If you're selling due to a change in employment, health reasons, or other unforeseen circumstances, you may be eligible for a reduced exclusion.In cases of unforeseen circumstances, the IRS may prorate the exclusion based on the time you spent in the home.In your situation, if you sell the property before meeting the two-year ownership and use requirement, you may not qualify for the full exclusion.

Based on the post, I'm not sure if the units are identical. 

Any other Houston based small industrial developers that would like to connect?  

Let's friggin crush all these dang gurus' BS about lead generation based on mere opinion.Mister Guru X made $3MM on cold-calling leads.

I'm based up in Greenville.