@Steve Morris I saw a video in which the guy said that if you get them to sign a memorandum and they tried selling to someone else that you could file it at the courthouse and prevent them from selling to someone else, and so I was just curious as to whether that was an option that any real estate investors participated in.

You aren't likely to find an institutional lender that will lend 30K or be in second position. could you clarify what you mean when you say "I am not looking to refinance as I am closing within the next 3 weeks or so and there are harsh penalties for early payoff of the loan"?

This is also why a lot of investors turn to hard money for short term loans on properties that other financial institutions won't lend on.

Do they want equity, do they want just a return, do they want to participate in the upside or just looking for coupons to clip.

No institutional lender is going to hand you $119K (70% LTV on ARV) secured by a $50K property. 

Run your math.Here are the general considerations regarding 401k loans.401k Participant LoansIf your 401k plan allows for 401k participant loans, the maximum loan amount is equal to 50% of the balance up to $50k.

I will not participate in fraud.Your situation sounds like it may be something similar going on.

@Silvie Fojon@Mya TooheyHere are the general considerations regarding 401k loans.401k Participant LoansIf your 401k plan allows for 401k participant loans, the maximum loan amount is equal to 50% of the balance up to $50k.

It really just takes the right team, and a good loan officer and lending institution that does a bunch of these....not dabble, but specialize. 

It will be hard to get financing from a traditional financial institution which I am sure you are aware of, unless you already have some wealth accumulation.