Most people think of their 401k as a lump sum of money that is being saved for retirement. What most people forget or do not know is that their 401(k) has other benefits when it comes to real estate investments. Many Costa Rican property investors have taken advantage of using a 401k rule which allows the account to be used as a loan instrument in purchasing investment property.
When involved in real estate investments, most people use little or none of their own personal money. A typical real estate investor would borrow money from the bank to finance their property investment. Borrowing against your personal 401k account is more like a bank loan made to yourself and backed by yourself. Since you are allowed to borrow against your 401k, you can use this rule to finance part or all of your property investment. Most Costa Rican property investors can easily pay back the loan without affecting their 401k balance. To get a copy of our exclusive information guide on 401k property investing, fill out the form below and you will receive it shortly. If you do not see the form, please click here.