I don't think being held to a "higher standard" is a disadvantage because your are supposed to be a business professional as a realtor. 

Your attorney may complete the process in his office or you might go to a title company.What you have done then, is 1. made an alternative known, 2. put the decision of granting a deed in the borrower's court, 3. the borrower makes a formal request that a deed be accepted, 4. the lender agrees to consider the request, 5. the lender shows due diligence (as a basis to determine acceptance), 6. the lender agrees to accept a deed upon certain conditions or unconditionally, 7. the parties then move to a settlement where deeds are executed then filed with the release of liens filed as applicable.Now, after following this path, it is highly unlikely that any lien holder or the borrower or any regulator can lay claims that the deed was pre-arranged, that the loan was made conditioned upon granting a DIL, that junior lien holders were dealing under a disadvantaged position or under any threat to their interests, that the note holder performed due diligence as a condition to accept the deed which shows again, there was no pre-arranged agreement and then 8. that the parties mutually agreed by settlement.At settlement the lender needs to obtain an  estoppel statement as to the correct accounting of the loan balance forgiven and the necessary tax reporting must be made.

Can anyone mention a couple of advantages / disadvantages of the above 2 approaches?

Now, since it is my first I'm sure he'll figure out I'm new in the RE game. may be disadvantage?

The disadvantage is the bureaucracy you have to deal with.

You can choose an exact match domain name, like I did, but know this.. there are disadvantages to this, and  my  exact match domain name is an exception.

Your one property will be at a disadvantage vs. a local owner that can have face to face meetings and is driving by a property on occasion and has multiple properties.

Any specific advantages/disadvantages of doing that as opposed to a traditional VA lender?

The disadvantage is that you are not in control like with private real estate, so you have to feel comfortable vetting a sponsor.

I'm not sure what the advantages/disadvantages are between them though.