I need some sound advice on how I go about vetting a private investor that has contacted me from BP. 

I also use a Private Lender for the initial purchase of the property.  

(d) A public or private water supplier shall not impose a lien against real property to secure unpaid charges for water furnished unless the owner of such real property is the person who incurred the charges and shall not deny water services when such a lien has been extinguished.

We were able to finance our first two deals with a line of credit agreement we made with a private investor at a very good interest rate.

If you are planning to use Fannie/Freddie loans for your next residsntial property (which are the best finacing vehicles upto 10 loans for single and 20 for married couple) no lender will allow you to close and take the title in the name of an LLC.Only commercial loans or private money and a few other types can be closed in the name of LLC but not for Fannie/Freddie reaidential conforming loans.People take the title in their own name, setup a single member LLC and then transfer the title into the LLC

Or is he interested in lending money privately?

. - I'll send you a private message - I would love to hear more of your story. 

My question has to do with qualifying for hard money/private money. 

Also, since it's a private sale from my friends family member.

It's easy to identify the private note holders from the institutional lenders.