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Updated about 2 years ago,
Refi for a Property Owned in 401k
Hi all,
Need some help. I have a property that is owned within my 401k that I self manage. As such, I understand that I cannot be made liable for the payback of the loan, rather my 401k needs to stand as credit worthy on it's own for any loan product. The property is currently financed for $85k and worth about $315k. It's fully rented with a renewed 2-yr lease pulling in $1700 gross per month. So, while my COC is about 15%, my ROE less than 5% as it currently stands. I'd like to refi this property to reinvest the equity (still within my 401k) into more cash flowing assets. But I'm having a hard time finding a lender given the constraint of the 401k ownership and/or that the loan amount is too small for any commercial loan product that I've found. Any ideas?
The current loan I have is a commercial, non-recourse loan. My current bank discontinued these loans shortly after I closed on this purchase.
Many thanks in advance for the help!
Josh