Using Solo 401k to do hard money / private lending

[Cliff T.]

Hi all,

I am hoping to get into the world of hard money / private lending using my Solo 401k and had a few questions.

1. I have approx. $120k in my Solo 401k but the deal that I am planning to fund needs about $180k. Is it possible for me to do $120k from my Solo 401k and the remaining $60 from another personal account? I'm assuming that is an easy Yes but want to confirm.

2. My Solo 401k is with mysolo401k.net. I went through the process of setting it up a few years ago and have contributed every year since, but haven't learned the ins & outs and don't understand the mechanics of how to fund the deal. Do I simply wire the money out of my Solo 401k account (currently with Schwab)? What type of documentation is needed?

3. Related to #2, when the deal wraps up and I am getting paid back. How does that process work? Escrow would then wire the funds into my Solo 401k account (at Schwab)?

4. Any general tips regarding private lending and protections that I need in place? I will be on the deed with a promissory note recorded, along with being added as mortgagee on insurance.

Many thanks in advance!