In short, you get an extra long lecture on commitment and on how they work in creative real estate vs traditional real estate investing, how it is NOT open enrollment (they supposedly only allow one person per area unless it is a very large area), you get a couple questionnaires, and they review your responses and get back to you whether you are good to move forward or not. 

Most traditional mortgage financing today ultimately comes from Fannie Mae and Freddie Mac, so lenders underwrite to those guidelines.

To clear up the distinction, everything everyone said has been right in their own respective context's however a property going from LLC can go to personal names or intervivos living trusts with conventional financing but yes it cannot go from LLC to LLC using conventional financing and this distinction is where portfolio or commercial financing is needed.As for the up to 6 financed properties for cash out yes freddie mac can do this while fannie is limited up to 4 unless if its delayed financing which has a limit of 6 for freddie and up to 10 for fannie with varying LTV's depending on whether your doing delayed financing or if you're doing a regular purchase/rate and term refinance and depending on how many units you're financing.2-4 units typically have LTV's that are lower by 5% as compared to 1 unit properties on the purchase and rate term refinance with properties 5-10 with fannie, however the other distinction is that with freddie properties 1-6 and even 5-6 dont have that "lower," LTV reduction as with fannie so this can be seen as a niche.to do a traditional cash out with out LTV or value restrictions the property will have to be owned for 6 months.

Or would there have to be a transfer from the TSP account to a traditional IRA then into a SDIRA?

He will want to make sure that piece is accounted for appropriately on his end before you jump in with a proposal to acquire these properties over time when you're not just buying them traditionally.

This is the "traditional way".Keep getting educated and network in your local REI.

@Monte Mabry If you are buying a property using traditional lender, then yes.

Here is the scenario:The project has gone on twice as long as expected, therefore holding costs have been twice as much.The project is maxed out for 203k limit for a 3 unit - meaning nothing more could be borrowed on it at the time, regardless of DTITo close out the 203k, the property has to go through final inspection with the cityTo go through final inspection with the city, we need about $40k of additional work (including new 1.5" water service)The property is not performing, so the banks see my DTI at the moment as very, very high - too high to get traditional financing, almost any way you cut it (HELOC, etc.).

Remember you are a solution to their problem - problem being a house they need to sell, but can't sell through a traditional agent.

We would repay the loan as soon as the title becomes marketable.We can't get a traditional loan because there is no title to loan against and same goes for "Hard Money Loans".