Is this legal? 401k loan question...

[Hunter Adams]

Maybe this is a dumb question, but is it legal to borrow money from my 401k (tax free) with a low interest rate, then use that money to loan out as hard money for a higher percentage? It seems like it might produce a better return than the market a lot of times, plus the money gets repaid back into my 401k and the "interest" on the initial loan goes back into my 401k as well.

Thanks, fam.