Private lending and Dodd-Frank

[Kweku Ako-adjei]

Hello BP'ers, I have a question about raising private money and how that works with Dodd-Frank now. I've done a few deals now and I'm looking to raise some private money from some friends and family.

What are the rules about raising money from family and friends? Does it have to be in an LLC? Do they have to be accredited investors? Does that depend on how much they give me? And I read somewhere that the people lending money now have to verify the borrowers ability to pay. Very confusing information out there about these new rules. Any help would be greatly appreciated.