Solo K financing question

[Mike Reynolds]

Just a quick question that I cant find answered other places. 

Let's say I have a solo k and a homeowner wants to seller finance a SFH. Can this be done inside a solo k while also using funds from inside the same solo to do rehab? If so how would that work with the title? Of course the solo would also pay the notes. That goes without saying. My way of thinking is this is non recourse.

[Justin Windham]

@Mike Reynolds

Seller financing is allowable for Solo 401k purchases. The absence of a personal guarantee from any disqualified persons is still required, just as with third-party financing. That's a primary component to a loan being non-recourse. You'll likely want to evaluate the investment with UDFI tax figured in.

The Solo 401k trust would make the payments to the seller/lender and would also pay for any investment-related expenses. The Solo 401k trust would also take title in accordance with the agreement reached, the purchase contract and note.