Have your CPA explain material participation to you and why he thinks you do not qualify.

Suggest you ask them to explain their case and specify requirements like application via an eMail first.   

What there was was not good but petty stuff easily explained. 

One more thing, when you explain your criteria.

I was understanding it but the way you explained it helped out tremendously.

Explain your situation and timeline.

Maybe I am missing something here.I'm wondering whether this is a reasonable metric to evaluate lenders on, because as explained above it seems so to me.

NOT trying to advertise or market here, just equip to explain and facilitate your math of things. 

In his case, gas is not used for heating, just cooking.I explained to him his landlord probably doesn't have a CO for his unit, and it will cost a few thousand to make it legal.

If he is into reading books, I would recommend reading two books; Investing in real estate with no (and low) money down by Brandon Turner and Raising Private Capital by Matt Faircloth.If he is into podcast, then I would recommend listening to Private Money Explained: 5 Simple ways to Find Private Money Today (Part 2) and The Rookie’s Guide to Finding Private Money for Your Next Property.Lastly, if I were his prevate lender, I would like to see how my investing will return, and I made this table that explains to my private lenders what they can expect from me (how much do you need to invest, how much interest do you get from the investment, and when do you get paid).Good luck finding several quotes, and let me know how it goes!