Private funding: Solo 401k / SD IRA

[Lucas LeBlanc]

My girlfriend and I are quitting our 9-5's to fully jump into real estate investing, but we have a few questions around funding that I'm looking for input on. We will be consulting a RE lawyer at some point, but I'm hoping for some early clarification as we put together our initial funding strategy.

We will be establishing an LLC focusing on flips as well as BRRR. We will be hiring GC's to do most of the work, but we will also get our hands dirty with DIY projects. We will start out by managing the rentals ourselves, and eventually outsource that to a management company as we scale.

Here are the scenarios that we would like feedback on:

1. Rolling our 401k's/IRA's into a Solo 401k under the LLC - would we be allowed to use these funds for the purchase or renovation costs if we do some of the renovations ourselves?

2. My parents have expressed interest in utilizing a self directed IRA that will act like a loan towards the purchase price of houses through our company, and we will provide a specific rate of return - are there any complications around this that we should be aware of?

3. Investments from friends that would be provided in the form of a loan (similar to #2, but not a SDIRA) - are there any solicitation issues here that would violate securities regulations?

Thanks for the help, and let me know if any clarification is needed!

Lucas