All Forum Posts by: Anthony Smoke

So I have a Solo 401K plan where I am the trustee, since the IRS allows loans on the Solo 401K to the participant. I have some questions on the IRS rules for loans from a Solo 401K? 

Is there a maximum term length? (i.e. 5 years, 10 years, 30 years, etc)

Is there a maximum percentage of the total value that can be loaned? (10% of total value, 20%, etc)

Is there a minimum interest rate that needs to be charged on the loan?

Thank you in advance for any responses. 

I received a deal from a wholesaler on BiggerPockets (I gave a reference to the wholesaler). This is a single family home located in Wilmington, NC. The deal was $80K for a 2 bed / 2 bath 1140 sqft property. It has renters paying $1,000 / month. The renovation is estimated between $20K - 35K for ARV of $140K. This is a cash purchase for me using my funds from a Solo 401K. The closing will be next week. I will post my BRRRR calculations once we close on the property.

@Justin Windham - thank you Justin. I am glad to see that there are Solo 401k providers on here. I still have to get my feet wet with a first deal.

@Shaun Weekes - Thank you for your response. That is very helpful. 

@Shaun Weekes - Hello Shaun, I am looking to BRRRR.

@Nicholas Covington - Hello Nicholas, thank you for your response. That does make sense.  I wasn't thinking of the loan in those terms. 

I have a large sum of equity in my primary residence. I want to pull the equity out so that I can use it to purchase rental properties. Is it better to refinance my mortgage or apply for a line of credit? 

@Aaron Belt - Hello Aaron, Thank you for your post. I have done some podcast on YouTube, which brought me to BiggerPockets. I think I am addicted to YouTube. :-) I will check out HouseAcademy's Online Forum. Thank you for the recommendation.

Yeah - I figured out to insert the names as a link. :-)

@Oliver Evans - Hello Oliver, I am glad you reached out to me. We are interested in Wilmington because that is one of the places we are considering for retirement. How is the market there?