As a checkbook holder and trustee, you have the control to fund these investments and the decision making authority to structure deals to your liking (shorter term, higher interest, etc.)I'm sure it's just how you chose to word it, but I will caution you anyway that "becoming a lender" sounds a bit like a business whereas what you are doing instead is directing your 401k to make passive investments.The key needs here are a way to contact and negotiate with those who may need loans and some appropriate loan paperwork to outline the terms and secure your 401k's interest in the investment.

Try to stay in control of everything you are responsible for.  

The landlord is obviously​ upset their tenant is a filthy disgusting pig who will not control nor clean up after her kids.

When it comes time to sell, you have no control over the intended usage of the buyer and it's still all cash or a conventional loan, again evaluated by Comps."

If you search for "san jose rent control" you will typically find a city government web page and other pages.

You can locate that in the begining is to have your office in your home place as lond as you can close it off and it has minimal distractions, especially personal things.Try to keep control of everything you are resposible for.  

Written in the loan docs for most loans are clauses that allow the bank to take the funds in your checking/savings accounts, sometimes for reasons totally outside your control, such as banking regulations and requirements. 

Make them earn your trust and let them know and understand your goals.Until you are satisfied with Team members try to stay in control of those things you are responsible for and when your trust is made let them be on their own and not under your control.  

Would you be more or less likely to invest in a pooled fund with no control over hand picking particular properties in which to invest?

On another note, if you are looking to have access to some of the retirement funds without having to pay taxes, you could open a solo 401k plan, which can be directly invested in real estate, and then you can borrow some of the solo 401k funds.Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business.