Solo 401k Non-recourse Loan
Why consider non-recourse loan for Solo 401k?
- The Solo 401k regulations state that you can't use a Solo 401k as security for a loan.
- Majority of U.S. banks or lending institutions are not familiar with non-recourse loan so don't offer it.
- Up until the last 9 years, the only option for non-recourse loan used to be from hard money lenders.
Advantage of Using Debt-Financing with a Self-Directed Solo 401k
- All net proceeds flow back into the Solo 401k tax deferred or tax free in the case of Roth Solo 401k.
- By using debt financing or leveraging, it allows for larger gains in your solo 401k plan.
- Have more Solo 401k funds for purchasing multiple real-estate properties.
Additional Information
Solo 401k Real Estate
Non-Recourse Loan
Tenants in common (TIC) Scenario
- The Solo 401k regulations state that you can't use a Solo 401k as security for a loan.
- Majority of U.S. banks or lending institutions are not familiar with non-recourse loan so don't offer it.
- Up until the last 9 years, the only option for non-recourse loan used to be from hard money lenders.
Advantage of Using Debt-Financing with a Self-Directed Solo 401k
- All net proceeds flow back into the Solo 401k tax deferred or tax free in the case of Roth Solo 401k.
- By using debt financing or leveraging, it allows for larger gains in your solo 401k plan.
- Have more Solo 401k funds for purchasing multiple real-estate properties.
Additional Information
Solo 401k Real Estate
Non-Recourse Loan
Tenants in common (TIC) Scenario