I believe the best way to go about this would be to utilize the HELOC as your new checking account and sit all of your monthly income inside it to reduce principal, which in turn reduces the amount of interest you pay and basically reduces your monthly payment every single month.

Assigning a contract you are a principal party to, is also not illegal in any state.There's really only 1 thing that is illegal and is often promoted by wholesale gurus, and that's pretending to be the buyer and telling the seller YOU will buy their house, when you have no ability or intention to do so.

In that case, there's no securities issue since each member would be a principal.

They using a HELOC to pay down principal and using your HELOC as your bank account.

@Jeremy Roberts I'm not going to do the cash out, just refi to a lower monthly payment so I have the option of more cash in my pocket, use it to pay on principal when I don't need it or use it on other investments that make more then the interest rate on the mortgage.

Now, if I'm flipping it, the principal and any gains from that deal need to go back into the Solo 401K.

I've never actually wanted to do this before, but now I'm considering it.Does making a partial payoff on the principal of a standard fix/flip hard money loan(12 months interest only with balloon, no prepayment) actually reduce the monthly interest payment?

Waiting for 80% of the principal to eliminate the MIP is wasteful and not smart money thinking.   

Property Numbers:Purchase price $108.5k w/ 20% Down loan at 4.75% gives me a $453 payment for principal and interest.Reno Costs: $3500 roof + $15k cosmetic update + $4k for other improvements/buffer = ~$24kRent: $550 and $650 after repairs and updates with 9% PM fee, 8% vacancy.

My mortgage (Principal & Interest) + Taxes & Insurance (Read "PITI") would be about $1500 with 3.5% down, so I'd be living rent free.