Posted by James Strange on January 07, 2003 at 03:30:10:
That is how I did my first two deals.
Just remember that there is some risk, but I think that it is better to pay myself the interest.
borrowing from 401k for downpayment - Posted by luap -CA
Posted by luap -CA on January 06, 2003 at 12:49:22:
I was thinking of borrowing from my 401k for a down payment on some investment property.
I’ve always seen people say that is a bad idea, but here are my thoughts.
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I’m not counting on my 401k for my retirement, I’m counting on real estate for that. My 401k is incidental.
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I’ve been taking loses since I’ve start my 401k 3 years ago.
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If I borrow from my 401k, I pay myself back plus the interest.(yes I know
but the money I borrow will not be in the 401k to make money, like I said its been
all loses, if it turns around I could always refinance and pay it off to get
the money back in there.)
Any thoughts on this?
Of course the I wouldn’t do that unless it would cash flow, even if it was basically %100 financed.
But if I can get something to cash flow after ALL expenses, is borrowing from my 401k a bad idea?