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.

2. 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:

 

http://www.iralending.com/

 

http://myiralender.com/

 

Here is some information on the process:

 

http://www.isolo401k.com/non-recourse-loan.html

 

http://www.isolo401k.com/qualifying-for-a-non-recourse-loan.html

 

http://www.isolo401k.com/non-recourse-loan-criteria.html