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Updated about 1 year ago,

User Stats

47
Posts
19
Votes
Rahul Gupta
  • Investor
19
Votes |
47
Posts

Buy a hold rental loan from hard money lender who can use a trust?

Rahul Gupta
  • Investor
Posted
Hello, 

I am opening a solo 401k with a check book access and it seem that they will set up a Trust and get the EIN from the IRS. Once we have that, we can open a bank account and invest in buying and holding rental properties in the future.

I just reached out to a hard money lender and they said that they can consider the funds from the Trust Bank account but the property will have to close under an LLC or a Corp.

Will this be considered a prohibited transaction?

Does anyone know of a Hard money lender who will be willing to close under the Trust instead of an LLC/ Corp?

Thank you

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