401k Loan vs self directed IRA

[Angel Rosado]

Thinking about some creative financing that would be most beneficial to begin investing. I can borrow 10k through a 401k loan @3.75% payable back over 5 years or use money that I have in an IRA and roll it into a self directed IRA? Anyone have any opinions?

[Mark Nolan]

@Angel Rosado

Are you looking to build your tax deferred funds or build your capital gains assets? I ask because if you use the borrowed funds, they will no longer be deemed retirement funds. On the other hand if your IRA invest directly in the property (i.e., takes title), the income will also flow back to the IRA and grow tax deferred.