Non-Recourse Loan to Solo 401k Plan for California Real Estate


I have a few Q’s and please excuse me as I have limited experience as I foray into this.
non-recourse loan:  one of my sources tells me that it is default California law that the loan will be non-recourse.  California is a non-recourse state. So does the loan really need to be specifically designated as non-recourse?  the reason I ask is b/c of the rates on these non-recourse designated ones are quite high.
second question, there seems to be more options for loans if the trust and a guarantor (like myself) is on the loan.  can this happen?


  1. You cannot personally guarantee a non-recourse loan to your solo 401k trust as doing so would result in a prohibited transaction.
  1. If you are looking to use a loan for a solo 401k real estate investment, which means the loan is to the solo 401k plan, then it is required that the loan be a non-recourse loan and the loan documents specifically refer to it being a non-recourse loan to the solo 401k plan. Below is a link from our website that talks about non-recourse loan for solo 401k’s and real estate investment procedures.


Quick Yet Precise Explanation of Solo 401k Non-Recourse Loan (debt financing or leverage) Process

Solo 401k Real Estate Investment Procedure


If debt is used to purchase the property, the debt must be non-recourse financing.  Please see the following for more information:

Following lenders specialize in non-recourse loans to solo 401k plans:


Here is some information on the process:

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


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