Checkbook IRA/401k Scenario Opinion

[Ben N.]

Hi all, I'm curious if anyone can offer their opinion on how this prohibited transaction should be restructured:

"Scott desires to purchase a rental property for $100K and would like to own the property personally but does not have enough money in his account. Therefore, he uses $10,000 from his Solo 401k Plan and $90,000 from his personal fund to finance the purchase."

For a new investor that doesn't want or doesn't have 100k in his checkbook 401ki, what are some ways this could be restructured to be valid?   

Thanks!
Ben

[Bernard Reisz]

@Ben N.

"Scott" can partner with his Solo 401k Plan...but, if he "does not have enough money in his account" to do the deal on his own, utilizing retirement funds to enable him get the deal may constitute a prohibited transaction.