That being said, I would ask the seller what interest rate they would like to receive in a short term note and let them answer.

@James Rodriguez I have an excellent attorney send me a pm

This was a good learning experience, however, I do not recommend out of state rentals starting out unless you have an EXCELLENT local team in place

Once they make it through all that you set them up with Zelle through their bank and I receive all my rents that way.

He is not receiving any compensation, except for profits over $25k, correct? 

I'm not really an investor, but do own one single-family house in a great inner east-side neighborhood that was my primary residence - I now rent it out and receive some positive cash flow.  

Well, you can always sell a partial on any of the notes in your portfolio using and assignment of receivables contract.

., 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.)

I would take that $40k and identify an area that is up and coming, near a college, university or employment draw, and purchase a small condo as a rental. 1 Bedrooms or studios make excellent rental investments. 

I've given him an offer but we wants a kick out clause in the event he receives a better offer during the option period.