Many investors look into the Solo 401 k Real Estate options to diversify their portfolio and explore potential investment opportunities. With the self directed retirement plan, plan participants can now invest their retirement savings in rental properties, which can provide them with steady passive income.
Many plan participants, however, are unsure of the rules and regulations involved in Solo 401 k real estate investments. In this Solo 401k Quick Tip video, Sense Financial shared what plan owners need to consider before investing in a Solo 401k property.
Solo 401 k Real Estate: How to Purchase a Solo 401k Investment Property
If you decide to invest your Solo401k funds in a property, keep in mind that the buyer is your Solo401k, not you. The title and other paperwork should list your Solo 401k plan as the buyer. Also, you cannot use your personal funds to pay for any expenses involved in this investment. For example, if the property requires renovations or improvements, the expenses are to be paid using money from your Solo 401 k real estate account. Likewise, all investment income, such as rental payments, should be deposited directly into your Solo 401k account.