I think the Yakuza lends with only pinkies as collateral.

Even with "no income", they may be able to simply collateralize your paid off property, or collect a larger down payment.

Non-recourse loan means that your Solo 401k can borrow (take a loan) from a bank, friend or investor for investing in real estate.Through the use of leverage or debt financing, the solo 401k greatly increases its available cash amount for investing.Non-recourse means that the lender cannot go after the Solo 401k trustee/participant or the balances of the Solo 401k (also referred to as self-directed 401k, individual 401k, self-directed solo 401k or Solo k).If loan default or foreclosure occurs, the lender can only go after the property for repayment, not any other asset of your solo 401k including cash or the Solo 401k trustee/participant’s personal assets.Since the property is the only asset attached to the non-recourse loan, these are the only funds that the solo 401k can use as collateral for loan.Non-recourse loans in connection with 401ks are not new but only started becoming popular in the early 2000’s.Non-recourse loans can be obtained through certain banks (e.g., North American Savings Bank) as well as hard-money lenders (e.g., whether friend, investor, or company specializing in non-recourse loans).While non-recourse loans can be structured for any term period, banks that specialize in them generally set 15 to 25 year loan payoff periods.Non-recourse loan frees up cash in Solo 401k for use in other investments including additional real estate purchases because only some of the solo 401k funds are used towards the real estate purchase that is utilizing the non-recourse loan.Since a non-recourse loan is quite different from a conventional loan, the qualification requirements are different in that the non recourse lender (assuming you are going through a bank) will NOT look at the following since the loan is to your Solo 401k, not you:Will not check to see if you are employedWill not check your incomeWill not look at your W-2’sWill not look at your tax returnsWill only look at solo 401k assets not your personal assetsSince non-recourse loan is to Solo 401k, the loan does not appear on your credit report since your social security number is not used.

Yup at the end of the day you'll have to decide whats best for you:- you can  fund using conventional into your own name and move it back in as Chris suggests which is typical since most investors want the 30 year term 30 year Am with a fixed rate- you can search for a commercial/portfolio loan but terms will probably be a 5 - 10 year term and probably 20-25 year AM with a fixed rate for 5-10 years balloon there after rates are probably high 4's to 6's depending on product, bank, and other unique features (recourse, prepayment penalities, terms, points, substitution of collateral features, etc).

The proper way to do this is via private placements within Reg D.on the debt side, which is perhaps something to consider at the beginning, you simply offer a collateralized note.

They can only get "loans" with the property as collateral.  

Note to self: Add "check for pay history in collateral files during initial due diligence" to my DD checklist...Not sure what you can do at this point.

As Wayne-man says, lender can still foreclose.The Decedent's estate is now responsible for all debts, secured and unsecured.A secured creditor can generally seek the collateral in a voluntary debt.

Since none of these parties are disqualified to  each other, would non recourse lending be allowed using THESE properties as the collateral? 

If my tenants suffer an uninsured loss that may have a knock on effect on their ability and/or willingness to pay rent and of course my property may suffer collateral damage from their loss.