I am looking to partner funds with friends and family in order to lend to a contractor partner, either as straight debt financing for acquistion and repair costs, or a combination of debt and equity partners, participating in profits after resale.  

.- More than half of the personal services you performed in all trades or businesses during the tax year were performed in real property trades or businesses in which you materially participated.- You performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated.Don’t count personal services you performed as an employee in real property trades or businesses unless you were a 5% owner of your employer.

No reason not to participate in the sale if your numbers are accurate. 

Or better yet,  gain experience, learning the ropes, by participating in a real deal.I don't come empty handed as I can offer my contracting/estimating/realtor experience, $ capital, and/or fulfill whatever roles are needed.I'm in the Northern Virginia area but willing to participate anywhere in the mid atlantic or south east.Hope to hear from you!

@Cam JimmyIf you are referring to yourself-employed solo 401(k) plan, even if you have multiple solo 401(k) plans you can only borrow up to 50% of the balance not to exceed $50,000, In other words, you cannot double up on your solo 401k participant loans.

I'm sure you're participating in local RE Investment Clubs - ask other investors to refer you to someone they've used successfully.

It's also good to look at the labor participation rate in the market.

I will second @Michael Bishop comment that there's always room for participating in the general partnership equity stack when finding or bringing capital to the deal.

Bigger Pockets is the premier site for new real estate investors to network with experienced investors, take advantage of valuable free resources, participate in forums, and get deals done correctly.Happy to help further. 

I will be participating with money too at the first round and would like for the group to be open to other investors that want to come in now, but also later in time.