QUESTION 1: If we were to purchase a Mobile Home Park for
straight-out cash from our Solo 401k plan account, can we later refinance with a bank
mortgage or a HELOC type loan to pull equity out of the property?
ANSWER: You cannot purchase property
including a Mobile Home Park from your own solo 401k because you are a disqualified party.
QUESTION 2: Are there any concerns about financing in this
way versus up-front?
ANSWER: Yes the concern is
that it is a prohibited transaction!
QUESTION 3: Are there any fees or restrictions?
ANSWER: Yes as a prohibited transaction
can result from even a partial purchase of an asset from the solo 401k by a disqualified
person such as the solo 401k trustee.
Note - the main reason
for obtaining financing after the fact is timing to close the loan.
Regards,
Lisa in Virginia
No comments:
Post a Comment