401K for Real Estate Investing

[Bert Isidore]

Is it possible to use my 401k to invest in real estate?

[Logan Hassinger]

@Arturo Martinez III

It sounds like you’re referring to obtaining a loan from your 401k.  One reason you would obtain a loan is if your 401k is with your current employer, as your employer won’t allow you to roll your balance to a self directed custodian (we recommend using Quest Ira for our partners). 

When considering a loan from your 401k, you’ll need to earn a spread, which means your investment will need to have a greater return than the interest your paying from the 401k loan. That’s an easy, simple concept on the front. No one projects a poor or negative return, but when using borrowed funds to invest with, you can potentially make a bad deal an even worse deal.