That higher dividend/coupon/cash flow is the reward you get for taking on the higher risk of investing in a higher risk financial instrument. 

(The difference between my hypothetical $35k and the known $12k leaves sufficient room to come out well ahead, it's not rocket science to buy at $12k and sell at $35k, and as we learned from 2008 paired with rule 34: "if you can think of it, someone can create the  accompanying financial instrument to sell on Wall Street" -- the guys that invented this stuff aren't waiting 5 or X or N years to get paid, they are getting paid now.)"

During the 2019 Texas legislative session, the Texas Legislature passed SB 1642, which adds subsection (1) to Tax Code § 34.21 and clarifies that a property owner entitled to redeem property after a tax foreclosure sale cannot transfer his or her right of redemption to any other person, and any instrument purporting to do so is void.It is important to note general timelines for redemption, IRS liens have 120 days, federal liens have one year, ag and homestead will have 2 years, all other properties are 180 days from the date the deed is filed.Analysis of Legal Factors An attorney will want to review the foreclosure lawsuit to determine the relative risk factor of the following: notice to correct parties, violations of automatic stays, or insufficient legal descriptions.

@Daniel DietzIRC 514 is the go-to... if you have problems sleeping at night.When a tax-exempt entity (IRA, 401, etc.) utilizes debt-financing, it generates taxable income in the form of Unrelated Debt-Financed Income (UDFI).A qualified employer plan such as a Solo 401(k) has a narrow exemption to UDFI when the debt-instrument is for the purpose of acquiring real property.A limited partnership share will pass through this real estate related exemption in most cases if the partnership is using debt to acquire real property.  

I am a 34 year old executive assistant for a small scientific instrument company in Boston.

I ask because I already have a fidelity self directed 401k and want to see if these instruments you folks are talking about already exist there.

My understanding is the former “whole note” holder retains the mtg/security instrument and bought only the “income stream” without an assignment of any mtg/security.  ....so my assumption is that you could not foreclose, but only your seller of the partial.....but I could be completely wrong. 

One title holder doesn’t necessarily need to be liable on the Note(the debt), but they’d have to execute the Mortgage which is the security instrument for the Note. 

And use the money that I achieve from real estate as an instrument to give back to the world and make it a better place than I found it.

They remain an instrument of service and owned solely by me.