Solo 401k and mobile homes in my mobile home park

[Holly R.]

Hi everyone, I'm new here. 

I own a mobile home park (that is not in my 401k) and wanted to know if I could use my solo 401k in the following ways:

1. Buy a mobile home from a tenant for small cash turn around and immediately sell it to a new tenant for twice the amount on payments? I'm not doing any work on the house at all. I'm collecting lot rent on it all this time that is not part of the 401k.

2. People want to buy a mobile home from me and do not have cash. Can my solo 401k be the bank and lend the tenant the money to buy a mobile home from me? And again I would be collecting lot rent on it during the entire time that is not part of the 401k.

Any suggestions?

[Brian Eastman]

@Holly R.

Since you personally own the park, your Solo 401(k) should not engage in any transactions with homes in your park.  That would create a nexus between the plan and your business.