Can I Use My IRA to Buy A House – No Money Down
Using your IRA, your 401k, your retirement funds for real estate? Is that a good idea? Yes!
Today we’ll talk about hidden assets, 401Ks, IRAs, things that people everyday dump their Money in than are excellent tools for buying real estate properties.
Using your hidden assets
This strategy of buying real estate with no money down comes down to this idea called
Hidden assets. Why are 401k, IRA, Annuity or Stock Market Portfolio account a hidden asset? It’s
because we have preconceived notions on what these accounts are for.
For example, let’s say you are someone has a job with a company that offers a 401k and your thinking “this company does a match! Sound like free money!” so you put money, the company contributes as well and then y
ou work and work for years but at the end of the day you’ll realize then it’s never enough for retirement. What needs to run into your mind is how do I use those assets today, for a gameplan, to get me where I want to go.
401k is a hidden asset but what it’s doing is not sufficient to create retirement in 99% of
situations which is the same case for IRA, annuity or a stock market account.
Speculative VS Investments
Let’s take the stock market as an example, you put money in hoping that you’ll have years where in you win and lose but overtime expecting to do well and better. Ask yourself, does it pay you every month? 401k does it pay you every month? No it does not. It’s speculative, it’s gambling
Why? Because your money is put in a place that does not pay you! That’s not as good as buying a raw land! That money does not pay you! it’s not an investment! it’s not working for you, it’s not doing something for you today.
Ask your investments what did you do for me last month? If it can’t give you an answer then it’s not an investment it’s just speculative.
Your IRA, your 401k or some of these types of hidden assets if they are not doing something for you, all I want to suggest is that they could be. Look at something called opportunity cost.
What is it doing here? Vs What is it doing there? In 401k in the next 5 – 10 years what money are you going to see from it? Nothing not a zip same goes for IRA.
If you can leverage these hidden assets, put it into a property that let’s say needs a $30,000 down payment for 20% and you have this in your IRA, put this in a home with $30,000 of equity and you just turned your $30,000 to $60,000.
Do not be afraid on paying taxes or penalties no matter what you do you’ll always be paying taxes.
Consider the penalties the cost of business.
Turn no cash flow a month into what? into hundreds of dollars in cash flow per month. You thought you had a good tax benefit but in the other, you’ll get a better tax benefit.
One is active, one isn’t. One makes you money, the other doesn’t.
So the wonderful world of 401K and IRA means that, there’s all this money around you and I.
Tap into it, Access it. It maybe one of the resources that you have or you know someone who has it which is almost just as good as the same if they are willing to engage with you on this amazing journey called Real Estate!
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