Self Directed 401k In Real Estate
Investing Self Directed 401k in real estate is different! You can yield multiple returns on your investment. It’s better than putting your money in a savings account or investing in stocks.
Self-Directed 401K Account
With a self-directed 401k, you can invest in the following:
- Residential/Commerical Real Estate
- Mortgage, Trust Deeds and Mortgage Pools
- Private Money Loans
- Limited Liability Companies
- Stocks, Bonds & Mutual Bonds
- Limited Partnerships
- Private Stock Offerings
This is not the most comprehensive list. Please contact your respective account manager for the list of possible investments.
How to Invest Self-Directed 401k In Real Estate?
There are a few rules to making investments:
- You cannot buy property for your personal use.
- These funds are used to provide for your retirement at a later time. Don’t expect immediate returns/benefits.
- You and your 401k plan are different things. All the transactions must take place under the plan name.
- You cannot invest personal funds with the 401k plan.
Real estate investing becomes simple after that. All self directed 401k plans come with a checking account. You’ll need to write a check to the title company. The property title is transferred under your plan name.
The income from a rental property goes into your 401k account. It’s tax-deferred money saved for your golden years. You can also take loans under the plan name. It works like a Limited Liability Company (With several limitations). You cannot use personal assets to guarantee loan payments. The lender has the right to foreclose on the property if your 401k plan cannot pay the loan.
You can also take a loan to purchase a property. Rehab the home and sell it to for a profit. The loan is paid-off and the profits go back to the self-directed 401k plan.
Most people don’t have enough money to purchase new properties in San Francisco. In such cases, you can lend the money as private money to real estate investors. These are short-term loans with higher interest rates between 8%-12%. This doesn’t require you to pay the full amount for a property. You can invest as little or as much you want.
It’s a safe investment because the loan is secured by transferring the property title.
Join Our Community of Private Money Lenders
It’s your invitation to enjoy a premium income for your golden years.
At AME Home Solutions, we’re seeking investment partners for our upcoming deals. We would like you to join the camp and become Real Estate Investors. It’s easy to invest with us and enjoy extremely high rate of return on your investment funds.
Contact us now to partner with us.