The application process begins with allocations at your state economic development authority or housing bond issuer that trickle through HUD.

"man last year I only made $100, or lost $2000 on these deals, but I learned valuable lessons and I think I will make more money in the next deal" or "real estate investment is just not my thing and I'd rather put my money to go buy stock or bonds." 

The increase in interest rates is also making other investments like bonds and CDs more attractive.

Some have “contractors insurance/bond/fund” something like that.

Some people are starting to look into surety bonds.

There's no need to harp on those aspects and besides, I'm here on a real estate investment forum soliciting advice real estate investing, not stocks, bonds, index funds or any of that other boring stuff where you have virtually no ability to improve the value of an asset Sooo, with that little diatribe out of the way...Per my understanding, I've outlined below how the process works for investing in Real Estate using a self-directed 401k.

We have some great options like the Oregon Bond (either a cheaper rate or up to 3% for closing costs), and the new Flex 5% down payment program.

Fix flip, house hack, trailer back, apartment hack, STR,MTR, depreciation, year one depreciation, wholesaling, BAH, seller finance,  sweat equity.Stocks Bonds:   More passive.  

The majority of them are already occupied, it's a mix of tenants and owner-occs with a bond for title in place.I always look at the job market and new developments going on in the area, but I don't know how Covid has impacted that over the past few months. 

He would qualify as an accredited investor.I'm encouraging him to look at passive income generation outside of stocks and bonds.