Sunday, May 11, 2014

Can real estate agent represent himself in solo 401k real estate transaction?



http://www.mysolo401k.blogspot.com/2012/05/what-is-solo-401k-commonly-called.html

Can real estate agent represent himself in solo 401k real estate transaction?
QUESTION: I am looking to purchase a rental property with my 401k.  Since I am a real estate agent, can I represent myself on the transaction?  If so, are there any rules or restrictions I need to be aware of?  

My solo 401k plan would be to not collect any commission but instead negotiate a reduction in price.

ANSWER: Yes the solo 401k owner may represent his or her own solo 401k in the real-estate purchase provided the solo 401k owner/trustee does not receive a personal benefit. In other words, the solo 401k owner may not receive a commission or any other credit for brokering the solo 401k real estate purchase. A price reduction would benefit the solo 401k and not the solo 401k owner/trustee personally.

Thanks you in advance, Francie from Michigan

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