Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.
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?
RESPONSE;
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.
