I'm trying this on for size so I have no real info. to add other than I think your friend has merit in his theory.

Team, The whole discussion on buying real estate under the LLC has its own merits while again debatable. 

If everyone is being 100% ethical then none of these things get done unless they really should get done (& I pride myself on my refinance inquiry decline rate), but by the time the consumer is done 'shopping' 5 different professionals, they are really just finding the best salesperson who can/will convince of the merits of doing the thing in question (hence the LLC mania).If anonymity is a concern, a revocable living trust can get a Fannie loan (do you see how I defaulted to originating a mortgage loan?

Sophisticated investors do not have to be accredited, but they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment. 

The loan should be based solely on the merits of the investment. 

I haven't changed too much in terms of policy over the past 8+ years in terms of moderation . . . looks like the philosophy has some merit, Jon.

I'm not saying you cant quit and be successful, but the merits of saying/showing you committed your time and financials to furthering your education says a lot about your character that certain people in the world value tremendously.

There is certainly merit to both single and multifamily investing as James indicated.  

Btw, investors like me who regularly have to find missing people subscribe to expensive but easy to use online databases and employ skip tracing professionals as well as private investigators when the risk/reward ratio merits the exoense. 

So if an investor decides to start whining to the SEC about a deal they will look for ways to prove you are guilty regardless of the merit of the case.The trouble is that the SEC has UNLIMITED resources to go after you if they get a burr up their rear-end to do so.