Pro/cons of investing in real estate funds via Solo 401k

[Jun Lee]

Good morning,

I do have a question that I wanted to get some insight if there are any glaring cons in my thought process/future action. I would like to invest in there funds below

1. DLP lending fund and DLP preferred credit fund = In solo 401k (roth or traditional) because they are tax inefficient. I don't think I can see and downside to this decision.

2. DLP Housing fund and DLP Building communities fund = They are suppose to be really tax efficient but I am considering using the solo 401k as an investment vehicle. 

Pros = Not having to deal with K1, Cons = ????? Maybe lost of tax efficient gains during peak earning years? But I assume those depreciation get's recapture in the taxes anyway when I sell those funds. Are there any other cons that I am missing for doing this?

[Jaime Frausto]

@Jun Lee One pro that I can think of a solo 401K is there is no UBIT taxes when an asset u invested that had leverage sales. As apples to an IRA

Hope that makes sense .