Looking for switching 401k into REIT for flip and investing

Looking for switching 401k into REIT for flip and investing

Rental Property Investor · Dallas, TX · Member since 2019 · 9 posts · 4 votes

Looking for experienced investment folk or people who have rolled over their 401k into an REIT/IRA for real estate investing/ flipping.

I am also open to network for info on how your experience was through this and some recommended providers of similar products.

Once done I’m looking to flip houses. Let’s talk

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  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    7y

    REIT doesn't apply here. REITs are traded securities. The biggest problem many IRA flippers have is avoiding the self-dealing problem. You can't provide any service to your SDIRA - so you can't swing a hammer, pick up a paintbrush, let a contractor use your power washer, or anything like that.

    Additionally, most flips go awry because the flipper underestimated their costs and ran out of funds - so don't get into SDIRA flipping unless you have plenty of funds to use, because you can't put your own funds in if your SDIRA runs out!

  • Rental Property Investor · Dallas, TX · Member since 2019 · 9 posts · 4 votes
    7y

    @Taylor L. Thanks for the info and clarifying. Is there a success story in SDIRA? I need to rollover a 401k into an IRA...

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    7y

    @Bhavani Dewan I use my SDIRA to invest in syndications. Other great use cases include notes and hard money loans as well. There are a lot of good options, it just helps if you focus on assets that lend themselves well to the rules of SDIRAs.

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