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Investing In Real Estate Podcast

Can you use money from your 401k account to buy rental real estate? And if so, how do you go about accessing those funds? That’s the first question I’m answering on today’s Q&A edition of Investing in Real Estate!

On today’s show, I’m tackling three of your great questions on utilizing a 401k to buy real estate, when to raise rents at your rental property, and how to accelerate payoff on a HELOC. Click play to hear my answers to your best real estate questions!

On this episode you’ll learn:

  • How to use your 401k to buy real estate.
  • What you need to know about raising rents at your rental property.
  • How to pay off your HELOC faster.

How to Use Your 401k to Buy Real Estate

You can certainly buy your 401k to buy rental real estate. I know this, because I’ve done it before! While I can’t give you advice on whether or not this is the right choice for you, it’s definitely an option to consider. Please note that there is a difference between withdrawing and taking a loan from your account. When you withdraw from your retirement, the IRS will slam you with a large fee. However, if you are able to take a loan, you can pay it back through your payroll. This can be a great option because you’re essentially borrowing money from yourself and then paying back the interest to yourself!

What You Need to Know About Raising Rents at Your Rental Property

Who makes the call on raising rents? A few factors go into play. First of all, the market dictates fair market rent. Secondly, you should be working with an efficient property management team. Your property management team should be keeping an eye on prices and suggesting a change when the market allows it. Ultimately, you as the landlord have the final say… but you will want to be realistic within what is fair for the market.

How to Pay Off Your HELOC Faster

If you purchased a rental property with your HELOC and are wondering how to pay down that loan faster, here’s what I’d suggest. Consider whether or not you need the income from your rental property right now. Refer to my video on The Three Stages of Real Estate Investing and consider using your rental income to fire at the balance of your loan.

Ask Me a Question at morrisinvest.com/clayton

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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to​ use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

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Posted on

January 10, 2022

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