What if he wants to send his kids to a private school & needs $15k to do so?

If you don't have the cash, you need a private lender or a hard money lender in your team.

The loan-mod reporting on credit is the only cloud.Are there any options aside from private money to obtain this kind of financing?

Joe, i don't mean to be argumentative, but i've read hundreds of posts on here and i have never heard of anyone giving a private seller $1000.

I know that private money may be my best option, but I would like to investigate commercial loans.

Otherwise I would try to bring in private money for part of it.I personally like the cashflow and LTV on the end of the deal.

After rereading it after I talked with them I kind of had that same feeling that you appear to have which is the customer would probably have to sue them to try to get the money. 

My goal is to find which niche will work best for my situation - rentals, multi-family, wholesale, or private lending.I always thought I would like to fix and hold but I have heard many horror stories about landlording.

I do some private lending, as well and my investors' properties are almost always titled to LLCs.

Private lenders and HMLs are or might be an option.