All Forum Posts by: J Newman

I usually don't do this but I just put this in chatGPT to give you more direction. I don't necessarily see it for big time advice but this is what it spit back for me. Hope this gives you a good direction!

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The rules regarding 401(k) loans can vary depending on the specific plan, but here are some general guidelines that may apply to your situation:

1. Employment Status: Typically, 401(k) loans are available to active employees who participate in an employer-sponsored retirement plan. However, some plans may allow former employees, such as retirees, to take out loans as well. It's essential to check with the administrator of your husband's 401(k) plan to confirm eligibility criteria.
2. Plan Rules: Each 401(k) plan has its own rules and regulations governing loan eligibility, loan amounts, repayment terms, and other aspects of borrowing from the account. Your husband should review the plan documents or contact the plan administrator to understand the specific rules that apply to his 401(k) plan.
3. Loan Limits: 401(k) loans are usually subject to certain limits, such as a maximum loan amount based on a percentage of the account balance or a set dollar amount. Your husband will need to determine if the desired loan amount for the down payment on investment real estate falls within the limits set by his plan.
4. Repayment: If your husband is eligible to take out a 401(k) loan, he will need to repay the loan according to the terms specified by the plan. This typically involves making regular payments, including interest, over a specified period. Failure to repay the loan according to the plan's requirements could result in penalties and tax consequences.
5. Tax Implications: While 401(k) loans are generally not subject to income tax or early withdrawal penalties, there can be tax implications if the loan is not repaid on time or if your husband defaults on the loan. It's essential to understand the potential tax consequences before taking out a loan from a retirement account.

Before proceeding with a 401(k) loan for the down payment on investment real estate, it's crucial to thoroughly research the rules and implications specific to your husband's retirement plan. Additionally, consider consulting with a financial advisor or tax professional to assess the potential risks and benefits of borrowing from a retirement account for this purpose.

@J Newman Are you looking for submetering of all utilities or just water? Just electricity? Happy to chat. Local laws definitely come into play as well

@J Newman how many doors and planned growth will dictate software choice.

So, share that info so we can offer more assistance...

@Tim Vitale

Yeah Tim is awesome. His team is awesome. His mentoring is awesome. He has a completely different approach to syndication than 90% of the other guys/girls out there.

 I am learning that now, Johann! I am looking at a bunch of properties this weekend, spoke with my first lender (DCSR) yesterday, and have about 10 deals I want to (attempt) to analyze. I plan on posting the analysis on here to get some feed back. BP has given me more than my mentorship ever has!