If you did not have an extension, then the penalty keeps accruing, going back to the original March 15 deadline.

Interest from the notes accrues tax deferred both your and the other investors self directed accounts (somewhat pass through) and you can use the funds from the other investor in your business since the loan is from a neutral third party.Another scenario, is that your 401K partner not be an owner or participant in the Leasing Company and he can loan directly from the self directed to the Leasing Company.

Leave me your name, the number I can best reach you on, the property address you're calling about and I'll get back to you as soon as possible - have a great day.If they have any inkling of motivation - or even just tire-kicker curiosity - they'll leave a message. 

hmm;  If you manage the units you own (screen tenants, sign leases, schedule maintenance activities), it's a passive income, but active participation, so you can use Sch E on your 1040 and accrue losses and gains.Normally, as an investor, we would want to shy away from RE Professional Status as that invokes the full restrictions of any RE agent or broker.

Out of curiosity, why didn't it sell?

As tax-sheltered money, it has to be kept at arms length and all returns accrue to the plan.  

Do you just literally pay the daily balance interest accrued each month and thats it?

The magic of what happens when I write my goals really sparked my curiosity of how exactly that process works.  

Just out of curiosity, does any of our fellow landlords here in this forum have trouble keeping up with many reminders for your rental properties?

Installment sale rule between related parties needs to be considered. the seller should collateralize the note with the property (although the construction lender will want the note subordinated), pay off the loan (in addition to regular payments) with release fees as each lot is sold, and make sure the interest is paid (not accrued) regularly.The new built housed will be ordinary income, not capital income.