We have covered a number of different ways to acquire properties using creative purchasing techniques. In the latest episode of Real Estate Investing for Professional Men and Women, I explain how you can acquire investment properties by leveraging your retirement investments. Whether it is your 401k, self-directed IRA, or a whole-life insurance policy, these investments enable you to borrow money so you can purchase an income-producing asset. By using these methods, you can build a portfolio of rental properties that generate passive cashflow while essentially borrowing against yourself.
401k, Self-Directed IRA, or Whole-Life Insurance Policy
One simple way to leverage your retirement investments is to borrow against your 401k. In most cases, you can borrow up to 50% of the balance to use on a down payment or to buy a property outright. You can also choose to open a self-direct IRA and purchase an income-producing asset directly within the IRA. The tricky part is that you need to get a non-recourse loan if you are financing because the property is federally protected in the IRA, but it is a great way to build long term wealth for your retirement. The third possibility is to leverage your whole-life insurance policy which builds a cash value. The cash value enables you to get a third party loan because it acts as a guarantee, and you can even borrow against someone else’s whole-life policy.
Build Long Term Wealth
Creative purchasing techniques can get fairly complex, but with the right strategy, you will have a lot of financial resources at your disposal. There is a lot to gain by leveraging your retirement investments and you can use them to purchase income-producing assets that get your money working for YOU. To learn more about leveraging your 401k, self-directed IRA, and whole-life insurance policy, listen to my podcast episode, “How to Leverage Your Retirement Investments.”