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    maggiB's Avatar
    maggiB Posts: 2, Reputation: 1
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    #1

    Dec 1, 2007, 11:39 PM
    Taking money from 401k TO BUY REALESTATE
    I have an option to purchase a small commercial building at a price below appraisal. This property will require 100 K to rehab and make like new... I can rent it at 14 per square foot at triple net... This will create a cash flow of about 1600 per month.

    I would need to take the money out of the 401k and pay taxes but not penalty.


    I would have approx 102K left in the 401k AFTER this deqal is done...

    Is a return of 1600 per month of passive income worth the 100k I WOULD TAKE FROM THE 401k ?>
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Dec 2, 2007, 09:23 AM
    What is your rate of return ( interest) on your 401K, first you are having to take out 130K to get 100 to spend ( your taxes)


    Also if this deal is that good, you should walk into any bank in the US even with medium credt and get a loan for ths.
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