Are There Advantages To Purchasing RE With 401k?

I wanted to know if there were any advantages/ disadvantages to using 401k to purchase RE as an investor?

Comments(8)

  • 64Ford4th October, 2004

    I transferred funds from 401K to self-directed IRA. Then I can invest in real estate and all the profit goes back to my IRA, tax free! Don't have to worry about those capital gains!

  • chanel1244th October, 2004

    Can you explain in more detail?

  • ceinvests4th October, 2004

    I have read that this was possible. This way your profits stay under the IRA umbrella, right? Who structures such? Thanks. C

  • norrist4th October, 2004

    Equity Trust at www.trustetc.com has a good site with many FAQs. Tim

  • chanel1244th October, 2004

    thx............does anyone else have any input?

  • 64Ford4th October, 2004

    The company Tim referred is the same one I use. I have been very happy with them. You can learn a lot just by visiting their site. Using a self-directed IRA opens so many more options for you.

    Consider having your IRA put an option on a property and fliping. All the money goes back to the IRA!

  • ceinvests4th October, 2004

    Appreciate the link! I will do some researching... Anybody know if you can put a property that you already own into it?

  • JohnMerchant5th October, 2004

    No, you cannot put property already owned into your own SDIRA...that would be disallowed self -dealing.

    If you'll call Equity Trust (see their massive website) they''ll walk you through doing "rollover" from your 401k into your SDIRA, then how to use that to buy whatever RE you might desire.

    Also, get and read IRS pub.590, a 100+ booklet on IRAs and how to use them. Free from IRS offices, or you could find and print from IRS website.

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