Posted about 1 year ago Seller Financing Solo 401k Owned Real Estate BACKGROUND: I wanted to make sure that I am able to do this following deal.Property in my Solo 401K that I am selling I had it listed for 550K.Offer is 540K, but requires a seller financed second mortgage of 38K at 0%.Am I allowed to hold that second mortgage? After the sale can I sell that second mortgage note to a third party that is NOT a disqualified person? Is this legal in terms of sales within a Solo 401K. Before I sign any paperwork of this I wanted to make sure it is acceptable.ANALYSIS: Generally speaking, it is acceptable for a Solo 401k to sell real estate owned by the Solo 401k to an unrelated person where part of the sale price is financed in the form a second mortgage provided that the terms of the second mortgage are on market/arm's length terms. Here, for example, you would need to be prepared to demonstrate that a second mortgage with 0% interest (and the other payment terms) meets this standard. Furthermore, the Solo 401k would also be permitted to sell the second mortgage to an unrelated person at the market price.To read read more solo 401k FAQs, VISIT HERE.