Hi there, I saw your youtube videos and was very impressed! I am self employed and quality to use a Solo 401k. I am fairly young at age 29, but would be able to put the maximum amounts in ($57k) a 401k this year.
I want to refinance to buy another property. That is what I have done with my current rental properties and I would like to do that all in a Roth 401k if possible.
Do the non recourse loans on rentals allow you to cash out refinance (assuming the proper equity is there) to buy more rental property? What kind of LTV are they looking for? I appreciate your help and I hope to work with you assuming these questions lead towards positive results.
ANSWER:
The solo 401k can obtain a non-recourse loan if the borrowed funds will be used to purchase a property under the solo 401k plan. The lender would look at the fair market value of the solo 401k including the existing properties owned by the solo 401k plan when determining the non-recourse loan amount.
The LTV is 65% to 70%.
You can reach out to the following non-recourse lenders for rates and terms.