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BiggerPockets Real Estate Podcast

881: How to Use Home Equity, 401(k)s, or IRAs to Invest in Real Estate w/Kyle Mast

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 29 January 2024

⏱️ 46 minutes

🧾️ Download transcript

Summary

Got home equity? Great, because today we’re showing you how to use home equity to invest in real estate, even if you’re low on cash. But maybe you’re still saving up to buy your first property. Well, we’ve got you covered; we’re also sharing the TOP ways to use your retirement accounts—your Roth IRA or 401(k)—to invest faster than ever before and even lock down your first property in 2024! Joining the show is Kyle Mast, fellow real estate investor and CFP, to talk about all the ways you can invest in real estate that you didn’t even know about. And if you’re like many Americans, you’ve got home equity just sitting there, waiting to be used, so today, we’re walking through how to unlock it so you can build wealth faster, retire earlier, or renovate that rental you just bought! Kyle goes over the multiple ways to finance these investments using a home equity line of credit (HELOC) or retirement accounts like Roth IRAs and 401(k)s, the special program new homebuyers can use to get their first house faster, and why you DON’T want to cash-out refinance your property just yet. Ready to start? Let’s get into it!  In This Episode We Cover How to use home equity or retirement accounts to invest in real estate  Cash-out refinances vs. HELOCs and the EASY choice in today’s high-rate environment  How to qualify for a HELOC and whether you can get one on your rental property  The 401(k) loan where YOU act as the bank and what to watch for BEFORE you get one The first-time homebuyer cheat code that lets you access retirement funds with NO penalty  How to make COMPLETELY passive income by “lending” your home equity  And So Much More! Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-881 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This is the Bigger Pocket Podcast Show 881.

0:04.0

What's going on everyone? This is David Green,

0:06.0

you are host of the Bigger Pocket's Real Estate Podcast,

0:08.0

here with Rob Abba Solo hanging out today, Robbie, how are you?

0:12.0

I'm good, man, I'm good. I think I just negotiated a really good real estate deal

0:16.4

The seller was very flexible and I'm excited. I love I love I love closing deals man. I love it. Yeah Rob practices the yoga method of real estate investing. He's always looking for flexible sellers.

0:29.6

Well we won't be talking about the yoga method today, but we are going to be talking about some really

0:33.6

great concepts for leveraging the wealth that you've already built in today's episode.

0:37.8

I know a lot of you at home have been wondering, can you use a 401k to buy a house?

0:42.4

Can you use a helock? Or should you use a 401k to buy a house? Can you use a Heloc?

0:43.4

Or should you use a Heloc?

0:44.7

Should you do a cash out refi?

0:46.8

Can you use a Roth IRA to buy more rental properties?

0:50.8

And are there tools out there that you can use to keep leveraging the wealth that you've already built?

0:54.6

We're going to be talking about this in so much more in today's episode.

0:57.6

That's right, Rob. We're going to be covering that and more in today's show with Kyle Masse, a certified

1:02.1

financial planner who is also a frequent

1:04.3

contributor on the BiggerPockets Money Podcast, and let's get to Kyle.

1:07.6

Kyle Mass, welcome to the show, thanks for coming on today.

1:10.3

All right, let's kick this off. What is your definition of equity for our audience?

1:14.4

That's a good question. Let's keep it real simple, real quick. The market value of your house,

1:19.1

minus any debt you've got on your house. So that'd be your mortgage.

...

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