A substantial portion of my real estate transactions 'work' because the borrower was paired with a lender offering unique qualification or feasible terms that meet or exceed the investors original ROI, COC, down payment or general investment goals. 

One day, you might regret taking the funds from the 401k. 2) You could consider borrowing against the 401k, whereby you can borrow up to 50% not to exceed $50,000.

If you cash out equity in a property, you are "borrowing" that money from the lender.

There are short term construction lenders FULL DOCUMENTATION, the whole novel of borrower past 30 months.

As a borrower your objective should be to  turn over a well organized and easy to digest loan package.

If so, here are some thoughts to consider as you research further: 1) When your IRA or Solo 401k borrows money, it must be a non-recourse loan, and there are lenders out there that will loan to an IRA or Solo 401k, you just have to reasearch.

For example, I am managing his investment right now all for free, I let him to borrow my car and store all his tools in my home, so our relationship is very close.

So, now, you only have 20% equity in the fund that is lending to the borrower that is 120% LTV, and you make money hand over fist.  30% is CONSERVATIVE.  

At closing a Note was issued and a Mortgage/Deed of Trust were issued showing the Borrower (Investor's) indebtedness to me, with a Mortgage/Deed of Trust showing my rights as Lender over the Borrower's property.I have received mixed recommendations on this topic and am looking for guidance that is consistent.Specifically, I lent money and had the investor/borrower/property owner place me as "Mortgagee" on their property's insurance policy.

(To borrow from a Commercial Real-Estate Term)It keeps our rents a wee-bit lower and thus makes our units easier to rent & more competitive for our rental-brokersAlso, since rents are lower, it's a win for our Tenants who get to pay less in rent.Obviously, our running property costs have gone way, way down.