Lending of monies for securities, by either banks or broker/dealers must follow the regulations of the Federal Reserve. 

I haven't used them so I can't personally vouch for them and I have no affiliation whatsoever but I've been through some of their models and personally know people who have used them and been satisfied.

So an additional 7,500 or so in tax if you are considered SE.I've actually researched and think you can get away with putting flips on sch. d if you are real estate investor and not real estate professional/dealer.

@Jon Joseph As someone who up to a couple of years ago had owned rental property in Dayton for years, who may be familiar with the property you were looking at (admittedly the possibility is low, it's been at least 5 years since I've been through any Dayton 5-unit properties), and who has done many, many seller financed purchases and who just last week gave a 2 hour presentation on seller financing to members of COREE (the most prominent REIA affiliated organization in Columbus) my prediction and strong opinion is that you will not be happy with the outcome. 

Do you have to be affiliated with the military to use PenFed? 

He's also speaking with a CPA, but then he also heard about investing via an LP set up by a Canadian company who operates as an Exempt Market Dealer, thereby circumventing the need to actually set up an LP, himself, but invest through one already set up, instead.

Could be a problem in a house needing a rehab since you are not in title.This "method" has been used by wheeler-dealer operators for people to live in a property and there are ways to simply steal the deal.

Later, you (preferably an affiliate of the Exchangor) raises the cash and deposits the cash into your 1031 Exchange account (before you need to close on the replacement property).

You have the option of going with a portfolio lender like Ridge Lending Group (no affiliation).

That broker cannot be affiliated with any other brokerages.The Division strongly discourages "Rent-A-Broker" situations, so you can attempt that at your own risk I suppose.