So I'd look at how your 401k can compliment your total investment portfolio, including real estate, and structure your investments so that it makes sense for your end game scenario.

Given your example you would lend a maximum amount of $16,100. of the purchase price. (23,000) You want the rehabber to have skin in the game.

If it has self-income, and you don't have employees, you can establish a Solo 401K and contribute up to 55K to the plan, per member, thus saving from taxes. 

They established both relationships and a reputation for that area.I have the same plan as you for acquiring properties in about 6 years once I'm in a stable situation - finding a couple off-MLS buy and holds per year.

My favorites are non-probated estates, they are usually a lot messier than when a family hires an attorney and goes through legal steps to perfect the title and establish who has the power to sell.The kickers are when the heirs are out of area, there are more than one heir, and they have undefined between them responsibility to take care of the house.

OTH, a servicer who is registered and conducting business with no skin in the game will be viewed as giving testimony that is unimpeachable compared to an individual note holder.

The deficiency, based on that article the way I read it, is that purchase money loans, a cash loan made for the purchase has no deficiency sought, an equity loan is based on an equity established, more in line with consumer financing.

Skin in the game changes the perceived risk.

I guess the question in a nut shell is: Is monthly cash flow the name of the game?

If you're relying on agent listings you are late to the game.