Non-Recourse loan from Uncle living overseas
I have a situation (explained below) and need some advice.
Background :
* My LLC and Solo 401(k) signed a Land Installment Contract on Dec 6th 2013. The percentage of ownership was 60-40 respectively.
* Both the entities are making payment to the Previous owner and have invested money on rehabbing the property.
* The property is ready for sale and we have buyers for the property. Their bank wants to property to be transferred/purchased to the Entity (LLC and 401k) before they close.
* The LLC has its share of 60% but the Solo 401K has a shortage of $45,000/-
Question :
My Uncle who lives in Canada is ready to give a Non-Recourse loan to my 401K and I would like to know if he is a qualified person for this transaction.
Also note that my Uncle wants to give it at a 0% interest. Not sure if this will impact anything.
Please let me know if any one had this experience or knows about this.
Thanks in Advance.