I'm new to investing and trying to build up my private lender list. I want to understand how to use your 401k to private lend for investing in a flip so I can explain it to potential lenders.
Thanks for the info!
to educate yourself on the subject I suggest you search this forum on this topic, there are many discussions that you will find educational and helpful.
In a nutshell you can ask potential lender if they have an IRA or 401k. Then you can ask them if they are happy with the returns they are getting there. And you can explain to them that they can set up a self directed IRA or 401k and use that as a bank and lend money to you and get nice (better) return on investment comparing to what they are getting now.
The investment that they are making will be secured by real estate (deed of trust) and guaranteed by the contract (promissory note).
Thank you for your help. I have read some of the post about this topic but I was starting to get confused but I'm sure that's part of the process. I'll continue to research and read until it all comes together. :)
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!