Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
9y
@Amy Hu
A solo 401k can obtain a non-recourse loan for investing in real estate. For a list of lenders click here.
The loan is to the solo 401k so it must be a non-recourse loan and the borrowed funds have to be used towards the purchase of the property that the lender will have recourse against. The lender will not have recourse against any other property owned by the solo 401k.
Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
9y
@Amy Hu
A solo 401k can obtain a non-recourse loan for investing in real estate. For a list of lenders click here.
The loan is to the solo 401k so it must be a non-recourse loan and the borrowed funds have to be used towards the purchase of the property that the lender will have recourse against. The lender will not have recourse against any other property owned by the solo 401k.
As George mentioned you can refinance those properties but the loan must be non-recourse. There are only select few nationwide lenders offering such financing. Each lender has their own requirements as to LTV, reserves, type of property, etc. When did you buy those and what is the price?
If those are lower priced properties you may have a hard time getting a loan from larger lenders because if let's say the property is worth $60K but they have a minimum loan amount of $50K and require 70% LTV - you are out of luck. But I can think of one broker who might be able to help you. They work with private lenders and basically would broker this loan for you. They can do smaller loans and have pretty decent terms better than hard money, which would be your other option. Feel free to PM me and I'll share their contact with you.