Self-directed Solo 401k FAQ – Can my solo 401k obtain a non-recourse real estate construction loan?

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Self-directed Solo 401k Real Estate Question: I’d like to purchase raw land to develop homes with my solo 401(k). Is it possible to obtain a nonrecourse loan for construction costs?


Great question as investing in real estate is one of the top reasons that clients open accounts with us (and many also obtain a non-recourse loan for their Solo 401k).

In our experience, the companies that specialize in providing nonrecourse loans to retirement accounts won’t provide a nonrecourse construction loan.

In other words, the lender wants to be sure that the investment property is generating a return that can be used to pay back the loan within a shorter time frame.

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>


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