The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC)   must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016, the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

Class B properties are typically owned by Institutional investors and private investment groups, or very high net worth individuals.

The Rockwell Institute claims they license something like 80 percent of brokers in Wa.  

However I feel like another institution could probably use that rental income?

--The lender, usually but not always a Bank, (Something institutional:  Credit Union, Mortgage Co/servicer, CMBS,  CDC, Local Housing non-profit,  church group, etc.)  

They then transfer the loan to Fannie or Freddie where it is bundled up with a bunch of other loans with similar credit/debt to income/loan to value characteristics and sold to institutional investors as a bond (mortgage backed securities). 

I've known the gentlemen for 18 years and the home has no mortgage so there is no risk of due-on-sale claus from a financial institution on his side. 

How can these institutional flippers make it at the prices they are paying? 

Grant Cardone is a sales person and be aware he gets a lot of institutional money at very low rate of return so he has no reason to compete with smaller syndicators and his returns are way lower than normal syndicators and also you want to have a direct relationship with your syndicators which you can not have with GC.

Begin at Sec. 1440 and skim to the end, prior sections are more institutional and consumer oriented.Those wanting to buy notes usually think they buy something like they buy a bond, just buy it and deal with it from there.