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Updated over 4 years ago,
Purchase by Self-Directed 401k, but the loan is in my name?
I am pre-qualifying for a real estate loan for my self-directed 401k. This is the first purchase I've done this way. The loan broker tells me that the loan will have to be in my name, even though the purchase can be made by the SD 401k trust.
Amongst the rules for SD trust investing are that the only the trust may pay for the property, with no outside money coming from me or anyone else. No co-mingling. I have enough in the trust to cover all expenses and down payments, but I am concerned about the loan being in my name.
Amongst the rules for SD trust investing are that the only the trust may pay for the property, with no outside money coming from me or anyone else. No co-mingling. I have enough in the trust to cover all expenses and down payments, but I am concerned about the loan being in my name.
Has anyone else done it this way? Is this normal?
Not asking for legal advice, just checking to see if anyone else has done this in this way, or knows of someone who has done it this way.
Thanks!