New to site ~Hello

[Tracy Carter]

Hello all,
Just found this site in my quest for real estate investing information. Happy to be here.
I'm a full time working mother of three little ones in Frederick, MD. I'm making a radical departure from my safety zone to make my dream a reality. Have always wanted to invest in properties, but never had the money. I'm getting ready to cash in my 401K to invest in a rental property. Has anyone had experience with using 401K money?

Looking forward to reading more topics.

[Andreas Galanis]

Welcome to BP; I'm also a new member.

Instead of paying tax on distributions from your 401k, consider rolling it over (converting it) to a self-directed IRA. A self-directed IRA is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. Most types of real estate investments are allowed in a self-directed IRA. Real estate may include residential and commercial properties (U.S. & Internationally), farmland, raw land, new construction, property renovation, development, and passive rental income. Real estate purchased in a self-directed IRA can have a mortgage placed against the property, thus lowering the amount of total cash needed for a purchase; however, neither the IRA nor the account owner of the IRA can have personal liability on the mortgage.

Good luck!