All Forum Posts by: Hunter Adams

@Jairo Castaneda-Gomez

Good day, Jairo! I'm also a newbie working toward my first deal preferably in the Hemet/Beaumont/Moreno Valley area.

Welcome to BP. Don't hesitate to set your keyword alerts. This is how I found your post.

I'm looking to attend my first meet up or REI meeting. It would be great to meet IRL.

Cheers!

@Timothy Lewman

Very cool tip! I didn't know the repayment was deductible. Thanks Tim.

@Kevin Gray

Good point, Kevin. No one likes to think they would be in that majority of people who would not pay back the loan, but those figures represent the reality of the situation. Then again, many people who utilize their 401k for alternative investments are probably more likely to withdraw from the program in the first place. It might be one of those things where they don't have the nerve to commit to withdrawing so they ease into it by not paying back the loan and taking the hit.

@George Blower

Thanks, George. I saw that caveat while researching 401k arbitrage, but this stipulation about it not being due until taxes are due makes a difference for sure.

@George Blower

I thought prime plus 1% seemed higher than what other people were telling me they've paid back on a 401k loan. Thanks.

@Brian Eastman

Very interesting. Thanks, Brian. Your post made me jump into the arbitrage rabbit hole all day. I learned a lot by googling "401k arbitrage", compared to the hodgepodge I was getting from "hard money from 401k loan". That's a testament to the power of knowing the correct term for something. I'm not a huge fan of the stock market, but I like the matched contribution and the tax benefits. It's pretty dynamic, so it will take a good amount of analysis on my part to compare expected returns. Thanks bigly!

@Carl Fischer

Thanks so much, Carl! That's awesome to know. It certainly opens up a lot of doors. Maybe I won't deplete my 401k after all ;)

Maybe this is a dumb question, but is it legal to borrow money from my 401k (tax free) with a low interest rate, then use that money to loan out as hard money for a higher percentage? It seems like it might produce a better return than the market a lot of times, plus the money gets repaid back into my 401k and the "interest" on the initial loan goes back into my 401k as well.

Thanks, fam.

@Jo-Ann Lapin

Done! Thanks, Jo-Ann!

Hello BP fam!

First post here. I'm have a motivated seller with lots of equity in an off market deal. The seller has a mortgage on about 50% of equity and would like to do an owner-carry. I know sub2 is a minefield but I think it can work in my situation. Anyone know a great RE attorney that I can follow through this minefield? I'm in Southern California, Riverside County.

Thanks guys!