Have You Considered Using Your IRA or 401K To Invest In Multifamily Real Estate?
Investing in syndication real estate deals with funds from a 401(k) can be possible through a self-directed 401(k) plan, commonly known as a Solo 401(k) or Individual 401(k). However, it’s important to note that not all 401(k) plans offer self-directed options, so you’ll need to verify if your specific plan allows for such investments. Contact us to learn more about your current options.
The IRA/401K Rollover Process
To get started, ensure that your 401(k) plan offers a self-directed option. If it does not, you may need to consider alternative options, such as rolling over your 401(k) funds into a self-directed IRA, which offers more flexibility in investment choices. If your current 401(k) plan allows for self-direction, you’ll need to establish a Solo 401(k) account, typically through a qualified financial institution or custodian that specializes in self-directed retirement accounts. Once you have set up the account, you can roll over or transfer funds from your existing 401(k) into the new Solo 401(k) account. With your self-directed 401(k) established and funds available, you can then research and identify real estate opportunities that align with your investment goals. MultiSyn Capital is a group of experienced syndicators and investors who focus on multifamily investment properties in the United States. Review the provided private placement memorandum (PPM) or investment summary to understand the details of each investment. When you are ready to invest in a specific opportunity, instruct your Solo 401(k) custodian to fund the investment. The custodian will facilitate the transfer of funds from your Solo 401(k) account to the syndication entity. Throughout the investment, stay engaged with the syndicator and monitor the progress of the investment through the updates provided. It’s important to note that investing through a self-directed 401(k) involves complex regulations and rules, so consulting with a qualified tax professional or financial advisor who understands self-directed retirement accounts and syndication investments is highly recommended.
