Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago,

User Stats

9
Posts
3
Votes
Nicholas Grandstaff
  • Rental Property Investor
  • Ellicott City, MD
3
Votes |
9
Posts

Using my 401k for REI

Nicholas Grandstaff
  • Rental Property Investor
  • Ellicott City, MD
Posted

I'm a complete newbie to REI. This is actually my first post here on Bigger Pockets. I dabbled with the idea of REI earlier in life (I'm currently 39), however, I received mediocre advice and I just wasn't hungry enough at the time to go after it on my own. Now I've arrived at a place where my goals are clear and it's time to reach those goals through REI. I have great people around me and have been consuming the great content on Bigger Pockets. Good people and good information has led me to a spot where I'm anxiously close to embarking on my first deal. 

My question concerning my 401k is this: I've recently pulled 25K out of my 401k to invest in buy and hold RE with no early withdrawal penalties. I have the opportunity to pull another 25K with no early withdrawal penalties. Do you think pulling another 25K to start REI is a wise or unwise move? 

I’m only paying federal and state income tax on these withdraws and I’m not required to pay it back. These are all conditions that have been created due to the Coronavirus pandemic. There’s already been two opportunities for me to pull the money, I only took advantage of one. I just received a letter in the mail that I have another opportunity, between now and Dec 15 to make another withdraw. How far should I take this? Appreciate your thoughts.

Loading replies...