Also, I would create a Offering Package describing what you want to do and potential returns.  

See if you can't get him to allow you to substitute the security of the notes from one piece of real property to another.

We love our paid for properties because of the epic cash flow and security!  

My apartment's lease isn't up until March of 2017 which gives me plenty of time to save up for the down payment, secure financing, and locate a great deal which leads me to ask @Randy Johnston I would like to touch bases with you to learn more about multi-family homes here in our area.

Conversely you might have someone in California who sold property and now wants to buy a package of houses from you because where you are they see cheap pricing per sq ft and rents that are favorable etc.So as a broker/agent you want to run a very profitable business and get a high return on your time.I will give you another example.

Typically when one states "you want to have someone invest in your company", you generally come under securities laws and any good self directed IRA custodian who are worth their salt, would ask for information that complies with securities regulations for raising of capital, whether is exempt securities or otherwise.If your intention is to borrow monies, and provide a mortgage (and most specifically provide a mortgage), there is a huge exemption for that.This does not matter whether is comes from a self directed IRA or 401K or otherwise.

If I collect a deposit, it is only used as security that I get paid, there are as many shady investors as contractors in LA.

Do not buy into any packages these so-called "experts" are selling.

We decided to take a course and learn real estate investing so we can secure our financial futures.

Nothing personal but if you do let him stay, increase the rent and add the difference on the security deposit.