401k to purchase property

[Megan Samar]

Hello everyone!

I am new here but have been reading a lot of literature on real estate investing. I have always enjoyed the whole process and watched a few friends get very successful in the industry. I want to get my feet wet and purchase a property this year (new years resolution!). I am curious what people think about using 401k's to get into purchasing a property and how you go about it? 
any advice is greatly appreciated!

[Denise Supplee]

Hi @Megan Samar, Using a 401k can work, but it’s usually best as a last resort since you’re giving up long-term tax-advantaged growth and may face penalties or loan limits. Many investors start with conventional financing, partnerships, or house hacking before tapping retirement funds. The key is making sure the deal cash flows and fits your risk tolerance, not just finding the money.