Great article! How difficult are nonrecourse loans to obtain?
I am very interested in setting up a self directed 401k but worried that I wont be able to finance a rental property once I find it. I would be rolling over funds from a prior job 401k but there isn’t enough to purchase a property in cash yet.
Thank you for your question. Nonrecourse financing can be easy or difficult to arrange for a property held in the self-directed IRA. It usually just depends on the property. Properties that are leased and producing solid income are obviously easier to finance than those that are vacant or less likely to generate income.
If you want to arrange nonrecourse financing for property held in an SDIRA, the best place to start is by looking at our list of the Best Self-Directed IRA Providers here: https://fitsmallbusiness.com/self-directed-ira-custodian/
Several of the providers on this list have real estate-specific programs or special offerings to help arrange financing on properties. One of these providers should be able to help you with your property investment.
Hope this helps. Best of luck with your venture.