When you find the right one, they will be able to guide you so you choose the right structure and stay compliant with regulatory requirements. 

In addition, I invite all others to research their respective State Statues and State Regulatory Agencies to determine what is legal and what is not legal.

INVESTORS place THEIR ASSETS AT RISK, PERIOD.All the folks on here who don't have two nickels to rub together want to refer to themselves as investors, so do those with some money who deal in RE or any other business, but they are OPERATORS or DEALERS, they are nothing near an INVESTOR.You and other brokers do all kinds of activities in notes, you use other peoples money in various ways, you also have a license, or I hope they do, and have regulatory oversight somewhere, but individuals must use their own freaking money or assets, borrowing funds beyond their means to conduct note transactions is brokering.I have no idea what may have been said that got that response from you, but if you disagree with what I said here you need to drop way back to some basic legal definitions.The reason so many people on this site don't get it is because they never start from ground level, they assume they know and jump in to something assuming things.

You will need to brush up on the regulatory hoops (e.g.

For an investor in Canada in our legal and regulatory framework you are not required to give a reason for denial and there are important reasons for not doing so, chiefly that the applicant could create some kind of human rights discrimination complaint based on anything that you say.

Broker-dealers have historically avoided the part of the industry currently being served by the platforms as well because it is extremely hard to make any money there with all of the regulatory burdens absent some sort of RIA co-investment type model that is supplemented by other sources of revenue.  

This is ok with my partner as he looks at it as if we're already paying the bank 5.125% why not pay it to you instead.Questions:1) Are there regulatory requirements I must meet to provide this kind of private loan to a closely held LLC in California?

They keep the leases up to date with all the new regulatory changes.You can leave all the fields blank and pay a couple bucks to download.

Probably why investors can't make heads or tails of pricing of other RE is due to the regulatory requirements as it has more to do with book value than the market value of the property.

The current economic and regulatory situation is causing many existing businesses to take a wait and see attitude even when they are turning a profit.I suspect if jobs are created soon you will see more and more cottage industries develop.