401k Funds to Invest

[Account Closed]

So I've come across a partner who's okay with tapping into some of his 401k to invest in real estate. However we've come across a small problem. He wanted to put down payments on 4 houses but we're only allowed to access it once until we pay off the loan. Then be able to use it again. And it'd take a couple years to pay off so it slows down the process a LOT. So is there any suggestions to get around this without going down the multi family route? Anyway to tap into his funds multiple times? If anyone's had experience with this feel free to comment. I've done some research on here with people who used their 401k but it mostly talked about people asking about the risk. I'd greatly appreciate help in anyway! Have a good day!

[Stanley E.]

I'm not sure who the administrator is for your 401K, but many of them allow multiple loans on the account (on the money you put in, not your employers match). Then there is the self-directed 401K, which allows you checkbook control. But, more specifically to attept an answer at your question, I'd suggest simply borrowing enough the one time that it covers the down payment on the four properties...or maybe a compromise where you borrow enough the first time to purchase three properties. If they are going to be rentals, once you've built enough capital from rents to make a down payment on the fourth property, go that route. It may be slower than what your original plan desired, but the investor's game is a slow one anyway.

Hope it all works out for you.