Anyone invest using their TSP????

Question

Any government employees here that have used a TSP loan fir their real estate ventures? Curious to hear your experiences or weather you think it is a good idea or not

Nick

Whitney Hutten · Answer

@NIcholas Hamel Yes and I think it's percentage of the balance as well.  Here is the TSP calculator to figure it out.  As of today... looks like the rate to borrow is 1.25%

Craig Boudy · Answer

My wife and I are going to dipping into my TSP for out very first deal and with the interest rate at 1.25%, we cannot pass this up. I am borrowing my own money and paying myself back with interest. I have a good chunk of change in there so I am going after it!

Erwin Miciano · Answer

I've looked briefly into doing this. There are some rules to it, but from when I looked at this strategy for a down payment it seemed pretty viable. Taking a loan against your self does not affect your DTI ratio because of the fact that you are borrowing against what is yours. It does put the amount of the loan on pause in your TSP and until its paid off. You also have to pay your self the interest rate of what the G fund is going for.

Looking at all of this, if you do have a nice of chunk of change in your tsp, it could prove to be resourceful.

Justin Tahilramani · Answer

Yes - My wife and I took out TSP loans for a down payment on a quad. We paid it back in 6 months or so. Very little downside assuming that you get it paid back in short order. I also use our TSP balances all the time to show proof of funds/reserves for purchase/underwriting purposes.

NIcholas Hamel · Answer

@Whitney Hutten

Awesome!  Very helpful.  Thank you whitney

NIcholas Hamel · Answer

@Whitney Hutten

Thank you Whitney.  Also I heard there is a limit to 50k you are able to take out as a loan. Do you know if this is true?

Nick

Whitney Hutten · Answer

@NIcholas Hamel Everything I know about the TSP loan is yes, you do have to pay it back prior to taking another.  I know a few people who will save up the monies and back it back in one large chunk to keep money liquid.

NIcholas Hamel · Answer

@Justin Tahilramani

Thanks Justin!  I wanna do a BRRRR and get the money back in ASAP. I took a loan out to side my house and I’m in the process of paying it back. Do I have to wait for the first loan to finish paying back before taking another?

NIcholas Hamel · Answer

@Erwin Miciano

Awesome thanks Erwin!

Anyone invest using their TSP????

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