Self Directed IRA

[Jason Stephens]

Good evening, I recently have been looking to get started in real estate investing and now I am up to the stage of finding financing. My father has enough money to finance my deals in his 401k and he's 60 years old. He would be willing to loan me the money in return for an 8-12% return on his loan. His funds would include all rehab costs. How does he convert his money from a 401k into a self directed IRA and are there any penalties involved or costs for him? If anyone can provide knowledge or links to explain how this works would be ideal. Thanks!