I have a hard money loan question. Can multiple retirement accounts be lenders –in this case my Roth IRA LLC and my self solo 401k?
ANSWER:
Yes, one can pool their multiple retirement accounts including IRA and solo 401k funds to invest in the same promissory note as long as the borrower is not a disqualified party (e.g., you, your kids, parents, spouse, etc.). The note and the deed will need to list the retirement accounts and their percentages of ownership. If additional funds are later invested in the note, the note at minimum will need to be updated to account for these additional note capital injections. Likewise, once note payments commence, they will need to flow back to the respective retirement accounts (the IRA and the solo 401k) based on the note ownership percentages.
