Loaning 401K Money to Fix/Flip Properties

[Steven W.]

Hi everyone,

I am working with partners to purchase SFRs, rehab them, and then sell them. I would provide the bulk of the capital through my Solo 401k plan. I've been told by my Solo 401k guru that I can do this only if my name is not on title, but rather, if I act as the bank and lend money to the buyers. That is, they would buy it with a loan from me, they would rehab, market it, sell it, and we would figure out an equitable way to split the profits.

Are there any draft documents out there that people can point me to that could provide a platform for us to create a legal agreement for this kind of partnering? I'm sure that we'll end up hiring a real estate attorney to make sure that all of the legal verbiage is correct, but I'd love to see what other people have used in the past!

Thanks,

Steven