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 ADVISE!  Todd

[Jaron Walling]

This is a very high level question and hopefully other investors can answer it. 

Financially you CRUSHED it. Why do you want purchase SFR 's in the the first place? Why not get into syndication or multi family? The property management is much easier.