Buy land through Solo 401K or Cash based on future land use

[Charlie Liu]

I am in the process of buying some land, I have a Solo 401K that I can use to buy the land.  I plan to hold the land for at least 5 to 10 years.  I also plan to do some light farming on it-a fish pond, raise some cattles, plant some fruit trees and vines.

Option 1.  Buy the land through Solo 401K and lease the land to my farming operation.

Option 2.  Loan money to myself to buy the land.

Which is a better option?  Better in the sense that leasing the land to my farming operation is permissible by the rules of Solo 401K?

Any help will be appreciated!

charlie