Buy and hold with Solo401k

5 Replies

Hi All, I just opened my Solo 401(k) - thanks to Mark Nolan and mysolo401k. 

I have identified a property, and have a few questions with regards to the best way to go forward.

1) The property will be a buy and hold. Is it recommended to set up an LLC owned by the 401(k)? If LLC is recommended, what is the process for setting up the LLC to allow for the purchase of the property? Should the LLC be a property management business?

2) How do I insure the property? I expect that the property has to be ensured under it's own account and cannot be listed under my personal residence policy. Can anyone recommend an insurance company that helps insure properties purchased with solo 401(k)s?

Thanks in advance for your advice and your patience in dealing with the simple questions of a newbie. 


@Leslie Griffith

These are good questions for your plan provider.  Hopefully they can help you.

@Leslie Griffith

1) You don't need to have the LLC, 401k Trust can hold property title. But in some cases LLC will make sense depending on your particular situation.

2) All transactions involving 401k must be 'arms length' so you are correct that you can not list that property on your personal insurance. You don't need 'special' insurance company, most should be able to insure the property. 

Hi Leslie,

I will send you and e-mail shortly regarding your questions.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here