Updated over 6 years ago on . Most recent reply
Selling in a Solo 401K with seller (me) 2nd mortgage.
I have a property that I am selling and have a buyer that requires a 2nd mortgage and that it is from me the seller and at 0%. The buyer needs that to be able to purchase the property at 75% LTV from the bank. So let's say it is 20K 2nd mortgage over 10 years. but at 0% because if the second had interest then it would allow the bank to be at 75% and do the first loan. Now this 20K is actually above the price I was willing to sell the property anyway.
1) Can I have that second done in my Solo 401K and still be in compliance?
2) After closing, is it possible to sell the note such that I sell it for less, but at least I don't have to manage the loan for 10 years?
3) Do you think I should just not do the deal because of the 2nd mortgage?