On the instrumental side I love Vivaldi.

Joseph - Any advice on where my friend can get his qualifying instrument?

If I had a faucet factory and I got more than 3 investors to make me a loan secured by company assets, or unsecured, that note is in essence a bond, a debt instrument issued by the company and is a security.If a mortgage broker accepts funds from more than 3 investors to the lending business and then loans the money out in it's name and then gives the investors a security interest in the notes made, that broker just provided a security, a bond.

(Ask the title company what grant deed or easement instrument is used there)Easement GrantedExplain the rights of use, unrestricted or get smarter and limit vehicle weight so your neighbor doesn't park a loaded semi on the driveway.

Your signing a personal guarantee on that debt instrument would be a prohibited transaction.  

For me I mentored with a 30 year HML in Oakland circa 1980's and then ended up owning the company. .but it was up and running  250 investors and 50 million on the books.. and in CA you can legally fractionalize the debt instrument so we only paid interest on the money when it was out.Second version that I started I used the Bank LOC's and we started with 1 million in cash and 4 million dollar line of credit...

@Michael MelchiorAn IRA may purchase property with a mortgage (or seller financing).Any debt instrument must be non-recourse, meaning no personal guarantee from you.  

You may be able to search by this instrument type to find grandfathered properties.As to where, according to the internet, this all happens at 777 Pearl Street, Eugene.

If that is the case, then I would definitely move to notes that are secured by real property instead of just a promise from a business owner with no real security.Ultimately, the two assets need to be compared based on risk, level of security of the instrument, time length, and return on investment.

Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date.