All Forum Posts by: Jia Liu

@James Masotti , great tip on the 12 month limit. Thanks! I have been contributing to my employer 401k for some years now. At this moment, I am actually leaning towards stop funding my 401K altogether (or maybe decrease my contributions). My rationale is as follows. If I am going to save money in a 401K and then take a loan against it and pay interest to invest in real estate, why not just cut the middleman and just simply put the money in a savings account for real estate? I intend to be a millionaire by age 60 anyways :D

@George Blower , @Thomas Rutkowski - I am not self-employed (yet). What's the benefit of combining a 401k from my previous employer to my current employer vs rolling the 401k from my previous employer to an IRA as @Thomas Rutkowski mentioned? 

@Dmitriy Fomichenko. When you say all income goes back to IRA. Can I work out with the IRA bank on how much goes back to the IRA? For example can I do 50/50? 50% goes to IRA and 50% cash flow? When do I start owning the property? When I finished paying the IRA back the amount I took out?

@Henry J. got it. Thanks for sharing. I have a 401k with a previous employer. My current one is too small to borrow against.

I am thinking about leveraging my 401K savings to invest in real estate. Does anyone have experience with that and would like to share their story? What are the pros and cons of doing that? Thanks!

Do most portfolio lenders lend one to their local community or will they lend out of state too?

@Curt Davis That's a good point. I have considered that too. 

@Todd Dexheimer Probably easier to deal with one 4 or 5 unit than to deal with 2 duplexes. 

Thanks for the advice @Geoff Andrist !

@Geoff Andrist Never thought of debt assumption! Thanks! I am looking at Memphis TN, Chicago, Cincinnati, Columbus OH, Dayton OH, Texas and even Detroit. Definitely not anywhere close to the bay area. It's madness here and beyond my level as of now. I agree, 5 units can be any form. It can be a five-plex. My goal is to have $1000/month cash flow. So $200 from each unit. I just thought it'd be hard to get a commercial loan from banks for a 5 Plex with my limited investing background. But I definitely will try.

@Anthony Gayden I am not sure if I am in the position to buy more. I think it's a little idealistic to buy 5 units with my current financial situation already. But please let me know what you are thinking. What else can I do to buy more?

@Thomas S. thanks for replying! $20k savings and 50% of 401k and my $13k from stocks, I have about $53k as down payment. That can leverage me about $212k. If I want 5 units, each would be valued at $42k. I am hoping to find those and hoping to get $150-$200 cash flow from each. I definitely make enough and have good enough credit to borrow $212k. Just not sure if I should borrow against my 401k and sell my stocks to reach that goal.