QUESTION:
Can I invest in seller financing real estate transactions with my solo 401k? This is somewhat similar to investing in notes.
ANSWER:
- Yes a Solo 401k can sell real estate owned by the Solo 401k to an unrelated person where part of the sale price is financed in the form of the seller's promise to pay part of the sale price over time where such promise is secure by the real estate being sold (secure promissory note/mortgage).
- This confirms that it would also be acceptable for the Solo 401k to lend money which is secured by real estate (secure promissory note).
- In either case, you would need to work with your local advisors to take any steps required to perfect the security interest such as by filing a UCC notice.