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Investing In Real Estate Podcast

Can you own rental real estate inside a retirement account like a self-directed 401k? On this episode of Investing in Real Estate, I’m answering this question—and more!

Today’s Q&A episode features three of your great questions on buying real estate inside a self-directed 401k, how to determine how much money you need to buy real estate investments, and how to decide between using cash or leverage. Click play to hear my answers to your questions!

On this episode you’ll learn:

  • How to buy rental real estate inside a self-directed 401k.
  • How much money you need to begin investing.
  • What to consider about using cash vs. leverage.

How to Buy Rental Real Estate Inside a Self-Directed 401k

Different providers may have different rules and guidelines, but for the most part, you can absolutely buy real estate inside a self-directed 401k. Having flexibility and control is one of the greatest benefits of self-direction. Our team of self-directed experts can help you determine which account type is best for you, match you with a rental property, and connect you with a custodian who can facilitate your transactions. Schedule a free call at morrisinvest.com to learn more about using a self-directed account to buy real estate.

How Much Money You Need to Begin Investing

The amount of money you need to buy real estate can vary based on the rental market, financing type, and other factors. For example, if you were buying a rental property in California (which I don’t recommend), it could cost you up to $300,000 just to get started. I’d suggest looking for more affordable rental markets.

To buy new construction rental properties with our team, we have a range of available price points. You can expect down payments start at around $50,000.

What to Consider About Using Cash vs. Leverage

Choosing between using cash and financing is a nuanced decision, because there are benefits to both methods. Although interest rates are higher right now, it can still be smart to use financing if you can take advantage of buydowns. Personally, I’m a fan of using the banks’ money to build wealth, but again, there are advantages to both.

Ask Me a Question at morrisinvest.com/clayton

Episode Resources
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Subscribe to Investing in Real Estate on iTunes
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Subscribe to the Morris Invest YouTube channel
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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

October 23, 2023

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