BRRRR vs. Self-Directed 401K

[Todd Kruger]

I am a Qualifying Broker and have been investing and flipping properties for 19+ years. I have flipped over 950 properties of all types and my personal financing is secure. I have multiple lines of credit with local banks of $2.5M currently at 5.25% as well a my HELOC of my personal residence of $1.75M currently at 4.75%. In addition I have a self-directed 401K plan approx. $3M that I do a lot of hard money lending in-generally charging 2-4pts and 12-16% depending on the length of the deal as well as the investment.

My question is this: Does it make more sense to use the BRRRR method and obtain financing on single family rentals in my portfolio or should I continue to purchase them in my 401K and get the even greater tax benefit a 401K provides. I currently do both with no reason for one or the other.

THANK YOU FOR YOUR TIME AND THOUGHTS! Todd