QUESTION:
Thanks for all the help in past, using the SOLO 401k I was able to successfully purchase the property in the account. The trust paid all cash, i am now wondering if it can refinance and use the proceeds to buy another? I know i can get a non-recourse loan to make a purchase, but i was wondering if it is also ok to refinance?
ANSWER:
Good question.
No you cannot refinance the solo 401k owned property to purchase another property as the rules do not allow for it.
However, the solo 401k can obtain a non-recourse loan for the purchase of the next property and the lender can take the value of the existing property into account when deciding on how much to lend to the solo 401k plan for the purchase of the second property.
For a list of lenders, please see the following.
https://www.mysolo401k.net/rehab-solo-401k-owned-property-borrowed-funds/
