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How to buy Tampa Real Estate with your IRA or 401K?

Think you can’t buy a home as an investment? Looking for a creative way to take advantage of the #2 in US foreclosure market? 

Use a Tampa Realtor with IRA investing experience.  I attended a 3 hour seminar the other day that wasvery informative.

Here are some different options you have to buy a home, land or to get a downpayment for a loan using tax deffers IRA’S AND 401K’s.

Your tax deferred and possibly tax free investing choices are:

  1. land, (raw large parcels or single lots)
  2. A  resale or builder inventory home (use as rental only)
  3. Commercial property that you lease out.


The most important thing to remember is that you cannot live in the home. It has to be an investment, therefore a rental home, or vacant land are some of your options for purchasing.  You can’t even use a beach house for personal use. It has to be a rental property under the guidelines.

How do I use my 401K to buy real estate?

Move your 401K to a Self Directed IRA. Can only be done if you no longer work at previous job.

Need a downpayment of to get a Conventional or FHA loan?

You can borrow 50K or 50% whichever is less from your 401K

You can also use your business partner or spouse’s IRA for a downpayment or to pay cash for a property.  You have 50K, they have 150K, save closings costs from lenders which can be 3-6% of the total purchase price.

Right now in Pinellas, Hillsborough and Pasco Couties there are 7,309 properties that are 200K or under, 3 bedroom 2 bath. 

If you have been thinking of buying land or rental homes and commercial properties in the Tampa Bay Area please give us a call to discuss your options. 813 784 7744

Rae Catanese, Realtor  Emai: [email protected]

All information is believed to be accurate. Always consult your financial advisior and CPA before making any changes to your assets!

Written by Rae Catanese, Realtor

Licensed Realtor since 2002, Tampa Bay’s own Rae Catanese regularly gives expert advice and insider tips about the Tampa Bay real estate market via her blog, The Tampa Real Estate Insider. If you are thinking of buying or selling a home in the Tampa, St. Petersburg or Clearwater areas-then this blog is for you. I typically post articles once a week. To make sure you don’t miss my newest posts, you can subscribe here! Have a real estate question? Email me here!

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