Do we pay a self employment tax on this?

I have been considering rolling my employer-sponsored 401K into a checkbook/self directed IRA for the purpose of providing hard money loans because I am DISGUSTED by the low ROR I get now.  

I haven't employed this strategy yet and my only credit card is fully paid down.

I'd love to be able to do this full time someday or at least be able to generate 50k per year from this in addition to my current employment income.I've been a landlord for about 6 years now so I'm not necessarily new to the business.

But if you don't pay a salary, then you end up paying this in self-employment tax anyway.

A landlord buys and will at some point sell, they will finance, manage, repair, renovate, they may employ others to find properties, the may end up doing lease options, seller financing, you might sell the note, you might find a heck of a deal and decide not to hold it but flip it....you get the idea.A capital company can do all of these things as the top of a pyramid or on a lateral structure.

There's nothing illegal in any of the methods employed here.

Now if you had a workers comp policy, then you would end up covering any worker you hire; a year end audit would uncover that you had employed workers who did not carry their own coverage and so you would be paying additional premiums for the time (and tasks) that they worked for you!  

I am in the terrible situation of not being able to receive traditional financing because of my short self employment time.

Hello,I am an out of state investor and started to investing in Las Vegas from California.I purchased my first rental property SFH and cash flowing around 138 a month without PM( I should have factored in PM before I ran my numbers but I didn't ) Anyways, I am itching to get into a second property, but since I am a self employed person ( I own my own fitness company) my debt to income ratio is capped ( self employed = look poor on W2) I bought Brandon turners book how to get into real estate with low to no money down, and looks like my best option is OWC.