Solo 401k Non-Reocourse Loan in GA

[Nicholas LaGatta]

I'm looking for any guidance on using a solo-401k as a down-payment to buy rental properties.  Can anyone share their experience?  Does anyone know a lender that does this type of loan?

Thanks in advance.

[Dmitriy Fomichenko]

@Nicholas LaGatta

When financing a rental property in a Solo 401k or self-directed IRA you have to use non-recourse loan. The reason for that is because you are considered "disqualified person" and as such are not allowed to provide a personal guarantee (conventional lenders will require that). Typically you would need 30-40% down and 10% in reserves, so plan accordingly. 

Over the years I assembled a list of non-recourse lenders for my clients, I think it will be helpful for you as well, I'm sure you will find someone there who can assist you with financing:

https://www.biggerpockets.com/member-blogs/2810/50272-list-of-non-recourse-lenders-for-self-directged-ira-and-401k

Another alternative would be to use private lenders, but these loans will cost you more.