How to invest in Real Estate Through your 401k
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In this episode of Martel & Friends, Antoine Martel explains how listeners can leverage their 401(k) or IRA to invest in real estate through self-directed retirement accounts. He outlines the limitations of traditional retirement accounts—restricted to stocks, bonds, and mutual funds—and highlights the benefits of self-directed IRAs and solo 401(k)s, which allow investments in alternative assets like multifamily properties, private funds, and real estate syndications. Martel walks through a step-by-step process: opening a self-directed account with a compliant custodian, rolling over funds via trustee-to-trustee transfer, investing in real estate deals (like those offered by Redbrook Equity), and receiving tax-deferred or tax-free returns through compounding cash flow and capital events. He emphasizes compliance rules, such as avoiding disqualified persons and personal benefit, and warns against common pitfalls like mixing personal funds or choosing slow custodians. The episode concludes with a strong recommendation to shift retirement savings into real estate for higher long-term returns—potentially 15–20% IRR—compared to the stock market’s 8–10% average.
Traditional 401(k)s and IRAs limit investments to stocks and bonds; self-directed accounts unlock access to real estate and other alternative assets.
Rolling over funds via trustee-to-trustee transfer avoids taxes and penalties, allowing retirement money to be invested in multifamily properties and syndications.
Self-directed IRAs and solo 401(k)s enable tax-deferred or tax-free compounding of returns through rental income and property appreciation.
Avoid prohibited transactions: your retirement account cannot invest in property you or your family control, nor can you use the property personally.
Choose a fast, transparent custodian with experience in alternative investments to avoid deal delays and ensure smooth fund transfers.
…and 3 more takeaways available in PodZeus
Introduction and Free Resources
Antoine Martel introduces the podcast and video, promoting free resources at podcast.redbrickequity.com and encouraging viewers to watch the video version on YouTube. He sets the stage for the episode on using retirement accounts for real estate investing.
Why Traditional Retirement Accounts Fall Short
“You're tied to Wall Street's volatility and you miss diversification into hard assets that can produce income that you actually control.”
Self-Directed IRAs and Solo 401(k)s Explained
“You have to invest it correctly for the next, you know, 10, 20, 30, 40, 50 years. And so you might as well invest what you want to invest in.”
Step-by-Step Process to Invest Real Estate via Retirement Accounts
“The money comes from their accounts to our account, we put it into our real estate funds account, we buy the real estate that real estate money goes back to the 401k and IRA with cashflow.”
Rules, Mistakes, and Action Plan
Martel outlines key IRS rules: no self-dealing, no personal use of IRA-owned property, and no commingling of funds. He warns against slow custodians, improper due diligence, and rushing into deals. He provides a clear action plan and encourages accredited investors to take the next step.
“My recommendation, my best recommendation is move your funds over in a 401k Roth IRA. I have tons of people that I talk to every single week that say they have their money in these accounts so they don't really give a shit about them. It's like perfect.”
“You're tied to Wall Street's volatility and you miss diversification into hard assets that can produce income that you actually control.”
“The money comes from their accounts to our account, we put it into our real estate funds account, we buy the real estate that real estate money goes back to the 401k and IRA with cashflow.”
Host
Antoine Martel
person
Redbrook Equity
organization
Self-Directed IRA
other
Solo 401k
other
IRS
other
Podcast.redbrickequity.com
product
Accredited Investor
other
K-1
other
YouTube
other
UBIT
other
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