401k, mutual funds, IRA . . . use it for real estate?

[Ryan Moran]

I've been actively looking for my first deal and in doing so I've been talking real estate around the office a lot.  One of my coworkers has expressed interest in investing with me but says that most of his money is tied up in various investment accounts.  What options does he have if he wants to get cash for real estate investments? Specifically he has:

401k: ~$110,000

Mutual Funds: ~$15,000 (was $30,000+ a few years ago)

Traditional IRA: ~$35,000

I've heard of moving money into a "self-directed IRA" but I'd like to hear from those with more experience. What's your recommendation? Thanks in advance!

-Ryan

[Dmitriy Fomichenko]

@Ryan Moran

if the 401k is with the current employer the chances are - he can't use those funds.

Mutual funds can be liquidated and cash can be invested in real estate deal.

Using self-directed IRA to invest in real estate directly or to fund someone else's deal is very common. I suggest you search the forum for this keyword and you'll have enough materials to keep you busy reading for at least few hours :-)