Investing is a way of life for us and we believe it should be a way of life for everyone. It’s a great way to build your fortune and escape the so-called “rat race.” Real estate investing makes a 9-5 job an option instead of a necessity. If that thought appeals to you, here’s 3 ways you can finance a multifamily real estate deal.
Use Your IRA or 401K
One of the most common ways to finance an investment deal is using pretax money from an IRA or 401K. Many investment companies now allow you to put your money into a self directed IRA. This money can be invested as you see fit. Any of these options will allow you to get the great returns from a multifamily deal.
Use the Money in Your Home
If you’ve built up equity in your home or another investment property so you can get a home equity loan. Another great option is to refinance your property and use the money to invest.
Use a 1031 Exchange
Many people sell and use the money in a 1031 exchange. A 1031 exchange allows you to use the profits from the sale of one property towards the sale of another property. The 1031 exchange defers the capital gains taxes on the sale so you can avoid the significant tax liability.
If you’re looking for a way to get started in multifamily real estate, let us know.