Purchasing in 401K - Posted by Bob

import · February 12, 2006, 5:50pm

Posted by James Strange on February 13, 2006 at 11:37:20:

All of the lot loan programs that I have seen required payments. Perhaps someone else knows a lender who will do them with no payments.

As for buying with the 401K. You have to have a non recourse loan for that. I don’t see that happining with 10% down.

import · February 12, 2006, 5:50pm

Purchasing in 401K - Posted by Bob

Posted by Bob on February 12, 2006 at 18:50:28:

Hello,

I have an inside opportunity to purchase lakefront property in a highly sought after resort area in MN. I can purchase the lot with $30k, which will get me an interest in the lot. ($350 - $450k value) Then I can flip my interest in the lot and gain the profit there, either immediately or wait and sell when the homes actually start going in. I can realistically expect to gain somewhere between $50k to $75k on this in the next 12 to 18 months, or maybe $20k if I flip it quickly.

Can I do this inside my 401k? If so, I need to know who to talk to in order to get it done.

Thanks.
Bob

import · February 12, 2006, 7:21pm

Re: Purchasing in 401K - Posted by Midge

Posted by Midge on February 12, 2006 at 20:21:43:

No you cannot do it inside your 401K. You would be able to do it if you had enough money in your Roth IRA, but not in a 401K.

You can certainly get a lot loan from a local bank or credit union or if you want you can take a loan out and borrow against your 401K.

I’m curious, which MN resort area is this?

import · February 12, 2006, 7:50pm

Re: Purchasing in 401K - Posted by Bob

Posted by Bob on February 12, 2006 at 20:50:59:

Midge,

Thanks for the info. Is a lot loan like a construction loan, where there are no payments until the home is completed?

I’m sorry that I can’t divulge information on the exact location. Suffice it to say it’s in a major resort area on a prime lake. That’s about all I can say, sorry.

Bob