Bought a duplex need another. Cashing out 401k

[Keith Fowler]

Here is my thought, I'm going to pay taxes on my 401K sooner or later. I believe I can do a much better job investing that money in property that will increase in value twice as fast as mutual funds + cash flow. There is the 10% fee but it will have been worth it later on when I have built an empire.

So my plan is to loan 50% from the 401k, buy multifamily and quit. Then cash out the rest of the fund to pay the taxes on the loan. (Can't cash out unless you quit. Can't get financed without a job)

I've already started a corporation for my home improvement business. And after 2 years of business growth I should be able to finance again when I sell my owner occupied duplex. 

[Mark Nolan]

@Keith Fowler

If you are looking to grow your retirement account, you can always transfer the funds to a self-directed IRA or a solo 401(k) and then invest those funds in real estate. All the earnings would flow back to the retirement account and grow on a tax-deferred basis. This is another way of growing your retirement accounts by investing in real estate instead of equities.