If the WY LLC gets a loan there is a security instrument (deed of trust or mortgage) that needs to be signed and recorded. 

If you buy primary you only exclude $750k loan interest if you itemize deductions instead of taking standard.

So keep that in mind when you get your loan. 

I had a response on a previous post this year about what the private lending restrictions will be here --> https://www.biggerpockets.com/forums/22/topics/1174919-bough...Here's a re-post of that information though:------------------------------------I do have a DSCR lender who can assist with a limited recourse loan that will close in the name of a self-directed IRA.

Traditional lender financing with 30-year fixed loan and 25% downpayment.

Heidi Pagano at C2 Financial is amazing to work with, patient and knowledgeable on all types of loans.

It was a standard loan.

For this deal my family member would like to loan us the money to go towards this next property rehab. 

As others have said, conventional investment loans are an option, as well as DSCR loans.

That being said, most originators are hit with a clawback penalty if you payoff your loan within 6-9 months, meaning that the originator has to repay all commissions and fees to the buyer of the loan if you payoff the loan within that period.