I am about to make an offer on a quad-plex and I need guidance. I have read up on the process for my Solo 401K, but I still have questions and don’t want to make an offer that doesn’t comply in terms of entities.
- I have also formed a LLC under which I intend to purchase an investment property.
- I want to leverage my Solo401K with a non-recourse loan. I understand that the Solo401K therefore “owns” the asset and all transactions and repairs flow in/out of it.
- Question: how can my Solo 401K invest in this LLC vs being the sole owner of the entire asset? I ask because under the LLC I can borrow hard money with less down and more options for repairs, payoff, etc?
- Ex: if the new LLC was going to buy an apartment building and I wanted to invest $50K of my Solo401K in that deal, alongside other investors, how does that work?
- Alternatively, I have to invest post-tax cash in a more conventional deal, which I don’t want to do.