Solo 401 K investing

[Kamyar Farhang]

Greetings:

I have some money in my solo 401K plan that I would like to invest. I  would want to invest this money in real estate. I have checkbook control over the funds.

I am living in California and this being a seller's market my money is not enough to put down as down payment. I was approached by another investor that are investing in mobile home parks in the midwest. They are forming new syndication to purchase another mobile home park and want me to invest my money with them.

I don't know anything about this type of investment however they are claiming to be able to generate at least 8% annual return on the investment and share in the equity. They are going to form an LLC, and I will not be involved in any of the day to day decisions about the property. They will be hiring a property manager and fix up crew if the place needs work done.

Since this is my retirement funds I am not sure what is the best way to approach this. If anyone can give me pointers as far as doing my due diligence or if I should even be involved with such a deal I would be much grateful.