Tricia,Making a loan to someone is not a distribution out of your account so there is no penalties.

It grows when you start to derive revenue from that building and revenue comes from tenants.My tenants have paid down hundreds of thousands of dollars of principal in the last 10 years and I personally haven't paid down a single penny.

But stress that each deal will be different, and the returns you are offering will be contained in the Private Placement Memorandum you will distribute to investors after you have a deal. 

This is what can be done in Illinois: Answer the telephone, take messages, and forward calls to a licenseeSubmit listings and changes to an MLSFollow up on a transaction after a contract has been signedAssemble documents for a closingSecure public information documents from a courthouse, sewer district, water district, or other repository of public informationHave keys made for a company listingDraft advertising and promotional materials for approval by a licenseePlace advertisingRecord and deposit earnest money, security deposits, and rentsComplete contract forms with business and factual information at the direction of and with approval by a licenseeMonitor licenses and personnel filesCompute commission checks and perform bookkeeping activitiesPlace signs on propertyOrder items of routine repair as directed by a licenseePrepare and distribute flyers and promotional information under the direction of and with approval by a licenseeAct as a courier to deliver documents, pick up keys, etc.Place routine telephone calls on late rent paymentsSchedule appointments for the licensee (does not include making phone calls, telemarketing, or performing other activities to solicit business on behalf of the licensee)Respond to questions by quoting from published informationSit at a property for a broker tour that is not open to the publicGather feedback on showingsPerform maintenance, engineering, operations, or other building trades work and answer questions about such workProvide securityProvide concierge services and other similar amenities to existing tenantsManage or supervise maintenance, engineering, operations, building trades, and securityPerform other administrative, clerical, and personal activities for which a license is not requiredIn Illinois, an unlicensed assistant may NOT perform the following tasks:Host open houses, kiosks, home show booths, or fairsShow propertyInterpret information on listings, titles, financing contracts, closings, or other information related to a real estate transactionExplain or interpret a contract, listing, lease agreement, or other real estate document with anyone outside the employing licensee’s firmNegotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licenseePerform any other activity for which a real estate license is required

@Raman Bindlish  Instead of intermediary credit agencies that only report summary information, get direct access to one of the principle credit reporting agencies from which all others derive their summaries. 

Anywhere you own property or conduct any type of business or derive any income from the state you need to file a certificate of authority or register as a foreign entity and pay taxes to the extent required by that state.

I live in Katy too, would you consider adding me to your distribution list for wholesale deals? 

Year End Valuation: Need to have a year-end valuation for reporting on 5500EZ each year.2. 1099 INT: Although a servicing agency may send you a 1099 INT, you wouldn't need this in this scenario as you are not paying tax on the interest gained at this time in your retirement account.3. 1098 INT: Is necessary to distribute to the the borrower when interest paid is >= $600.Non-Retirement Account:1.

Wal-Mart is successful because they saved money through revolutionary distribution practices then passed them on to customers because they understood that the profit impact would be made up in volume. 

Chris, unless you are at the retirement age pulling funds from your 401k will be considered early distribution, which will result in taxes and penalties (both on state and federal levels).