I guess my question is in this scenario, what is deferred gain if the $100k is distributed from QOF?

We buy all the properties with our own funds and then distribute them to our investor partners who are looking for opportunities to use their funds and or self directed IRAs to generate double digit returns not otherwise available anywhere else so it's been a great win win strategy.  

Have they ever missed a distribution?

Your CFA should be helping you with income vs. expenses and your passive investments (401k, IRAs, stocks, etc) not how you derive your income.Good Luck,NavyDoc

So hopefully by foregoing that 20k, ill end up with say 60-80k on the term with distributions .  

They would invest in “Matt Rothwell Holdings LLC”, and then my LLC would buy the property(ies) and distribute funds according to how much they invested.

Distribution capital of America.

There are few exceptions so you may want to check with your plan administrator if they allow what's called "in-services distribution".2) If you terminate your 401k the loan will become due and if not paid will become premature distribution thus taxes and penalties would apply. 

Would this be distributed through to me in the form of dividends?

I checked out Latitudes web site (nice stuff), but I haven't yet looked to see if they have a supplier/distributer in this area.