Their business model relies on deal flow, and that requires some conformity to what the secondary market is willing to buy.

You will need to disburse funds annually to each property LLC - but if they are all single-member LLCs this may not be required and only the PM LLC will need a bank account, etc.This is not legal or tax advice, so be sure to check with tax attorney and/or tax professional.

This is how most hard money works now Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

I will pass.( the LARGER the risk/ loan/cash/ time… the LARGER I require in likely return.)b) RENTAL …same INITIAL investment… at the end… property value ( ARV)..MUST be great enough to1) refi… 2) All cash out is back.. 3) Cash flows positive enough to build ( any situation) 6 month cash backup.4) Property MUST have enough equity so that if I needed to sell TODAY… I won’t lose cash.The above requirements “ appear” to be unrealistic ( todays market) … ONLY becausea) non mature / non savvy “ investors are climbing over each other to out bid on over priced “RETAIL” properties being marketed as “ wholesale deals”b) the Gurus and Real Estate Investor Associations are NOT doing their NUMBER ONE JOB… which SHOULD be…To..”

Also down payment required may be higher based off experience.

This would require hiring an attorney and create some long-term obligations, but may solve a number of your problems.  

You might also want to check and see if STR are excluded from the licensing requirements.

Develop the plan, know how much $ is required to execute, and then start sharing the plan with those who may be interested in investing with you.  

Most lenders will require that you occupy a minimum 51% of the building in order for it to classify as owner occupied. 

I have already reached out to My Real Estate attorney and he is going to be drafting the required paperwork to secure the loan against the property.