The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC)  must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016, the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

This is also happening nationally (http://www.cnbc.com/2017/01/24/why-the-supply-of-h...).I am an REO agent and it seems to be getting tougher and tougher to find good deals for my buyer investors.

I know, I could just go to a hard money lender or other institution – it might even be cheaper!

Look for a local business bank and not a National Big Box.

By their estimates, its 26% in Chicago and 33.7% nation wide. http://www.chicagobusiness.com/realestate/20170302/CRED0701/170309967/heres-why-that-buyer-may-not-plan-to-live-in-your-homeJen

Nationally, direct mail has a low response rate, like around 1%.

I live in Michigan and just wondering if someone from my state can recommend financial institute(s) they were liked to work with. 

If you qualify for and utilize a Delaware Statutory Trust (DST) then you will be able to have access to institutional quality real estate from the proceeds of your 1031 exchange.

Aside from a few minor downturns during national recessions, Austin homes for sale have steadily increased in value since the 1980s, proving that buying real estate in the area is a good investment.

Consider joining your local apartment association (usually by extension you will be joining your state and the national apartment association).