Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth 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 ow business.   

He/she should say hey look here dont bring in the non occupant borrower because youre required min down will go from 3.5% down to 25% down and give you some alternative options.

So effectively the LLC's balance sheet shows as if the LLC owns the houses free and clear (i.e. since the loans do not show up).Now alternatively I could book the loans on the LLC's books and have them show up under Liabilities and everything would look good, EXCEPT the issue here (at least in my head, maybe this is not an issue...lol), the LLC would be showing the conventional loans belonging to ME.

I don't see how I can fund this rehab without a HML covering the purchase and rehab, I'm sure someone on here in a similar situation has used alternative methods.

But, it is more useful when used in conjunction with alternative ways of gathering information. 

Becca Hi Becca,It sounds like you may be looking for a Bank Alternate/Stated loan.

Thanks Rob, Im not sure about the conventional loan on investment property, I was just trying to come up with an alternative plan to avoid hard money, and wanted to know if that was a good idea.

If person A gets the mortgage, then they also get the title and person B has no standing for the property.The scheme is nothing more than alternative view of a Wrap.

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. 

My recommendation to someone who is really trying to bootstrap it is this: Have as many things as possible in place in advance. have a pre-made lease set up, do some mock marketing for tenant lead generation, and save up all you can and cut out any extraneous expenses but also find alternate funding sources for an emergency.