Everything I've read with regards to Dodd Frank on 'advertising' for private lenders seems to indicate that the advertising rules only apply if you're borrowing over $5M or if you are commingling funds and forming a security. 

I have $$ in 401k's I can't borrow against because I don't have W2 income from that employer to repay the loan.

What we have done and is working out for us so far is as follows.We pulled/raised/borrowed money to do our first rehab.

What other business can you enter, borrow money for inventory, and pull in 170K a year gross.

They required 2 DE LLC's: LLC#1 my husband and I are 50/50 partners and LLC#1 is sole member of LLC#2 which will be the borrower for the loan and it is a disregarded entity.Since the expense has been incurred and we are set with another lender, and since LLC#2 is registered to do business in the states where the rentals are located we would like to use the setup.To date I am a Real Estate Professional, this is what I do full time and my husband holds a job.I believe that there will be no issue taking the loan to LLC#2, changing the deeds when the loan closes from us to the LLC and that income/loss will pass through to LLC#1.I believe that since LLC#1 is a partnership that again we still will continue to report income/loss to our personal return and I can continue to be considered a Real Estate Professional. 

They are currently borrowing in the low 4% range.  

You pay yourself interest and they do not require any qualification other than you have to have enough money in your retirement plan to be able to borrow. 

If I went the hard money route it would have cost me approximately $20k to borrow that $100k for 8 months.

Cumulative across all borrowers. 

Understandably, the lenders perspective is to investigate a borrowers liquidity and debt servicing capability, but what methodologies do you use to review the actual investment?