Solo 401k Benefits / Disadvantages

[Christian Nachtrieb]

Hey folks,

Currently I am in an "early growth stage" as a real estate investor. I have three properties under my belt, and looking to grow much further beyond that. By day, I'm a video producer and operate a couple of LLC's doing production work and my only retirement setup at the moment is a Roth IRA. Interested in opening a Solo 401k. Obviously this would be beneficial in that I'm skirting some tax money until later in life and thus reducing my taxable income.

However, here's the rub.

I'm not rich. I don't have tens of thousands just laying around. I would LOVE to be able to borrow and take a loan out against the 401k which I know you can do.. BUT it's limited to 50% of the value (limit of $50,000 total). In essence, in an effort to save on taxes, I'm limiting the amount at which I can use my own funds to acquire properties.

Has anyone dealt with this conundrum and what are your thoughts on this situation?

Thanks!