Hello BP Friends.
Just over 2 years studying note/paper space and am manager of note business Northwest Note Works. 60 y/o Licensed RE Broker. Need capital to fund performing note acquisitions and to purchase a 4plex (live in 1) in a seller financed deal using my yet to be opened Solo 401k. I think the Solo 401k can be Roth Characterized. I currently have SDIRA Roth account. Plan to seller finance 4plex every 3 yrs or so...
My questions are:
1. Does this make sense?
2. Is a Quitclaim Deed the best way to go with transferring title of current rental/residence to my LLC?
3. Live in Whatcom County, WA. Do you know of any experienced CPAs that are versed in IRAs or any experienced real estate/business Attorneys who are versed in seller finance documentation?
Thank you BP Tribe
Following this topic.
I wish I had something to add, but I'm curious about this myself. Good luck Dalia!
You'll want to check the rules, but I'm pretty sure you couldn't live in a property that was purchased by your solo401k. It would be seen as self-benefitting and that's against the rules.
On the QCD, you'll definitely want to speak with a lawyer. The risk would be if your current mortgage (if you have one) has a due on sale clause and they choose to exercise it. From all I've read, that's highly unlikely to happen, but that's a risk you'd have to be willing to take.
Great talking to you last night!
Thanks Alecia. I guess you are right about prohibited transaction with solo 401Ks and SD Roth IRAS. Just wondering if there is a way to "partner" funding with me living in one unit. And yes, house if free and clear, so no due on sale...