Investing a Wells Fargo Self-Directed Solo 401k in Real Estate

QUESTION:

I have a checkbook Solo 401k account and  I am using Wells Fargo to hold the funds. Do you have any information on how I can invest my solo 401k in real estate? 

ANSWER:
Assuming you opened a self-directed solo 401k and Wells Fargo is simply holding the solo 401k funds in a bank account titled in the name of the solo 401k plan, please see the following:

• Wells Fargo is the custodian of the cash in the Solo 401k bank account.
• You are the trustee of the plan and you will hold onto the title documents for the real estate purchased by the Solo 401k (i.e. you are the custodian of these documents).
• The Solo 401k can invest in real estate subject to the following requirements:
  • Real estate investment procedures: https://www.mysolo401k.net/solo-401k/solo-401k-real-estate-investment-procedure/  
  • Please keep in mind that you can't work on the property yourself and if you do a high volume a fix and flips (e.g. more than 2 per year) the IRS may attempt to tax as a business (Unrelated Business Income Tax).
    
  • The property must be purchased from an unrelated person and then sold to an unrelated person.
  • You can't lease the real estate owned by the Solo 401k to you or any other related persons.
    

VISIT HERE  to learn more about investing a solo 401k in real estate.