I really don't care to pay a debt off a few months early if it means I don't have the savings to participate in an opportunity that comes along. 

You are looking for an active participant as it sounds as if you are not the developer. 

Even splitting up the buckets between parties and letting everyone participate in a central property management company, or only granting income shares not capital shares, would be better.

Looking for feedback on this from anyone with experience with this type of thing. thanks everyone for the participation.

I don't think I would necessarily be considered an active participant.      2. 

As a licensed real estate broker "agent", can I participate in equity sharing with my LLC - and negotiate a short sale?

We are interested in purchasing a vacation rental and immediately participating in a rental program.

What the IRS does stipulate that all activities of the plan must be for the exclusive benefit of the plan beneficiaries.The IRS recommends the following criteria to determine if a plan’s policies are for the exclusive benefit of the plan participants: The cost of an investment must not exceed its fair market value (FMV) at the time of its purchase.A fair return commensurate with the prevailing rate must be provided.The investment must be sufficiently liquid to permit distributions per the plan terms.The safeguards and diversity that a prudent investor would adhere to must be present.So put that in perspective relative to the lending arrangement you are considering.

The best bet is to bring your investors into the deal as LP according to the sponsor PPM returns and fees in exchange for participation in the GP.

You can take participant loans from a Solo 401k, but not an IRA.