JV between my SDIRA and my friend’s Solo 401k

[Julian Buick]

I'm wondering what the best way to structure this would be. I have funds in my SDIRA and my friend has funds in his solo 401k. We want to fund a rehab project where we will not be doing any of the work. We plan to make a loan to a third party rehabber that will be doing all of the work. Should we set this up as an LLC or a Trust of some kind? We want to combine our funds so that we are both in first position. I don't want one of us to be first and the other to be second. That brings up another point, if we crate a JV agreement I assume it would have to be between my SDIRA and his 401k. Do we have to get the custodians to sign off on it. Any recommendations or suggestions are greatly welcomed. Especially from @Brian Eastman and @Dmitriy Fomichenko

Thanks

[Brian Eastman]

@Julian Buick

On a flip project, it is better for IRA/401k money to be simply a lender collecting interest. Equity participation in repeated flip transactions can create UBIT exposure.

Both entities can be co-lenders on a single, 1st position note.  Work with a title company or real estate attorney to make that happen.  That will be much simpler than forming a new entity.