401K and IRA Financing

Using Your 401(k) To Leverage Your Next CRE Acquisition

Commercial real estate investors understand the challenges they face when trying to secure financing through traditional channels, such as conventional bank loans. Between the bank’s own limitations, stringent requirements, documentation, and red tape, getting the funding you need – especially for time-sensitive CRE investment opportunities – can seem nigh impossible. Fortunately, Abel Commercial Funding can provide quick funding by sidestepping the bureaucracy of traditional lending sources through our self-directed 401(k) lending line.

Leveraging your 401(k)

Our program offers a credit line based on your 401(k). Not many people realize that a 401(k) can be used to leverage real estate acquisitions. The myth exists that a 401(k) must be invested in things such as stocks, mutual funds, or CDs. The truth is that the Employee Retirement Income Security Act (ERISA) allows people to engage in real estate investments. One of the main reasons for this myth is that, generally speaking, banks do not offer this type of financing, because their money is made through loans and conventional investments by their customers.

The advantages of our self-directed 401(k) program for real estate

By utilizing our self-directed 401(k) program to purchase real estate, money can be drawn and placed in a custodial 401k account to use for investments. This allows the retirement fund to grow, and any gains from real estate investments go through your 401(k).

Type of real estate

Abel Commercial Funding’s self-directed 401(k) programs allows for the purchase of the following types of properties:

• Office Space
• Multifamily Rentals
• Residential Homes
• Tax Lien Certificates
• Raw Land
• Duplexes
• Condominiums
• Real Estate Notes
• And More

401(k) Program Requirements

In order to access our Self-Directed 401(k) program, borrowers must not currently hold a position with the provider of 401(k) funds. Retired, self-employed, or clients working at a different company other than the one contributing to the 401(k) can access this special program.

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