Hard money is a good short-term debt instrument for rehabs. 

"At least one Borrower must occupy the Property within 60 Days of signing the security instrument and intend to continue occupancy for at least one year."

., it's best to read the security instrument or the NCGS requirements, like at NCGC 45-21.10 Requirement of cash deposit at sale before you grab a fist full of $100 bills and run to the courthouse with your 5%.A large percentage of security instruments will be from a GSE, with Fannie Mae forms being very common.

Account ClosedBest to start a new thread for something like this.IRS rules simply prohibit an IRA or 401(k) account holder from placing a personal guarantee on a debt instrument. 

If they're just bringing $, they get a debt instrument.  

Rental income is passive, but hotel and some short-term rental can be considered services income, not passive rental income.Any debt instrument used by an IRA or 401(k) would need to be non-recourse. 

He does have an accredited financial advisor, whom I also consult with, but I find his advise, while sound and well-intentioned, to be limited in scope to the financial instruments he can offer.

Would you rather use that money to buy a safe 4% yielding instrument (like a US Treasury if they yielded 4%)?

Those typically are tied to a secured instrument so they would need to be modififed but give you an idea of the terms. 

As I mentioned, most Architect's services and "instruments of service" are not transferable or assignable which confuses this issue since what scope of services is the Architect operating under for the new owner??