Partner with Solo 401k for house purchase

I’m thinking about proceeding to Open Solo 401k, but would first like to know If I buy real estate partially with funds from a Solo 401K and the other part with my own money, is that permissible?   I realize the home would be deeded to both the 401K trust as well as me, individually.

Purchasing real estate alongside your Solo 401k is permissible provided it is structured under tenancy-in-common and no debt financing is incorporated by you personally nor the Solo 401k, even if it's a non-recourse loan. Reason being, bringing debt to the table would result in a prohibited transaction because it would be deemed “Lending of money, or extension of credit between a plan and a party in interest”, since you would be party to the transaction. Note however that non-recourse financing would be allowed if only the Solo 401k was the party to the transaction.

To learn about prohibited transactions visit:

http://mysolo401k.net/Self-Directed-Solo-401k-Self-Directed-401k-SoloK.html

To learn about tenancy-in-common transactions visit:

http://mysolo401k.net/Blog-for-MySolo401k.html?entry=purchase-property-with-solo-401k

To learn about how to invest in real estate with Solo 401k visit:

http://mysolo401k.net/Blog-for-MySolo401k.html?entry=purchasing-buying-real-estate-with