- You cannot personally guarantee a non-recourse loan to your solo 401k trust as doing so would result in a prohibited transaction.
- 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.
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: