Cash Out Non-Recourse Loan

[Robert Reineri]

I've asked this question directly to several non-recourse lenders, and I can't seem to get a straight answer. It seems pretty straighforward and a sensible question.

I'll be investing starting in August when I have access to my employee 401k, which I will roll into the Solo 401K I have set up. I want to buy a couple properties with cash via the Solo 401k, and then want to "cash out" refinance with a non-recourse lender. My logic is I want the advantages of being a cash buyer, but I certainly want to take some of the equity back out of the property to invest in another.

Any recommendations on a lender who does this? Or at least one who can answer my question "yes" or "no".

Invest on!

[Dmitriy Fomichenko]

Thanks for the mention @Ben Leybovich!

Here is a list of non-recourse lenders specializing in lending to retirement accounts:

https://www.biggerpockets.com/blogs/2810/50272-lis...

There would not be any recourse against retirement account, only underlying property, that is what non-recourse means. 

There are some lenders who will lend up to 70% LTV and smallest loan amount (if I remember correctly) is $40,000 (not $1 million).

You could do a "cash-out" refi, but if you are doing this shortly after acquiring property - lender will use purchase price as the value of the property, not it's current appraised value.