Palmy ➕Nancy

• What is a solo 401(k) plan, anyways? 
• How a solo 401(k) plan benefits multifamily apartment investors
• 7 steps to setting up your very own solo 401(k) plan
• Ready to skyrocket your investment returns?

Hey Hey, Solo 401(k)! 🤩

Curious about investing in multifamily apartment syndication, but not sure where to get the funds? 

It’s simpler than you might think! 

We’re here to share all about investing funds from your solo 401(k) into multifamily apartment syndication – a strategy that can skyrocket your returns and diversify your investment portfolio! 🤩

Now, if you don’t have a solo 401(k) plan yet, this info is still for you, because we’re also sharing easy steps for how to set one up for yourself! 

So, first let’s cover what exactly a solo 401(k) is, and how it benefits multifamily investors looking to kickstart their passive income journeys. Then, we’ll set you up to reap the benefits of this exciting investment strategy. 

What is a solo 401(k) plan, anyways? 

You’ve probably heard of a regular 401(k) retirement fund, or mayyyybe you even have one set up for yourself.

Well, a solo 401(k) is somewhat similar, while offering extra perks and benefits that are definitely worth discussing. At its core, a solo 401(k) is a retirement plan created specifically for business owners and entrepreneurs – making it a great choice for multifamily investors.

Here’s where things get really exciting…

A solo 401(k) allows you to be in control of your money – meaning you can add to it whenever you want, as both the employee and the employer, AND you can also borrow from it! 

Having the flexibility to access retirement funds can come in real handy for self-employed individuals, because unexpected financial situations can arise out of nowhere. The freedom and options of a solo 401(k) offers peace of mind and opportunities for financial growth. 

One specific way a solo 401(k) can help grow your income, is using it to invest in multifamily apartment syndication. 🙌

How a solo 401(k) plan benefits multifamily apartment investors

Whether you’re already an experienced real estate investor, or just looking to get started, multifamily apartment investing is an excellent investment choice to diversify your portfolio. 

Sometimes the price commitment to invest in apartments can seem daunting for investors, but listen, that’s where apartment syndication comes into play. Investing in apartment syndication allows you (the investor) to pool your funds with other investors to make it more financially manageable, while still getting you into the passive income opportunities the deal creates!

Plus, when we say passive income, we mean just that – you get to passively make money while a hard-working syndication team handles the ins and outs of the multifamily deal. 

Pretty cool, right? 

You get all the benefits of multifamily apartment investing, with none of the responsibilities of being a landlord. 

In addition to the steady cash flow that rent brings in, multifamily investors also get the possibility of appreciation – meaning big, big returns in the not-so-distant future, when the property sells. 

Now, back to that solo 401(k) we’ve been discussing…here’s why we recommend it for multifamily investors: 

Funds from a solo 401(k) used for investing are exempt from taxes. 👏🎉

Yep. You read that right. 

When it comes to building long-term wealth, tax-free growth is a real game-changer, especially when applied to the passive income opportunities of multifamily apartment syndication. 

Want to learn how to save more for your future through a retirement fund that you have full control over? 

We’ve got you covered! 

7 steps to setting up your very own solo 401(k) plan

We’re about to break down the process of setting up your own solo 401(k), so you can start contributing funds that will finance your future. We just have to say, first, that you should always speak to your financial advisor or tax professional, to make sure everything is set up correctly. 

That being said, here are the 7 steps to setting up a solo 401(k):

Step 1: Find out if you’re eligible

This retirement account is specifically made for self-employed individuals or small business owners with no employees except a spouse, if applicable. Meet these few requirements and you’re in the clear!

Step 2: Pick the right provider for you 

Finding a financial institution you trust is essential when setting up a solo 401(k), so be sure to do your research during this step. You’ll have plenty of options to choose from, but look for things like competitive fees, excellent customer service, a solid reputation, and easy-to-navigate platforms. 

Step 3: Start setting up your plan

This is the paperwork step – where you’ll need to give all your financial and business information to get officially set up with your solo 401(k) plan. 

Step 4: Set up contribution limits

Before adding to your solo 401(k), you’ll need to set up the limits for how much you can contribute as both the employee and employer. This will be different for every person, and depends on your own salary and income. 

Step 5: It’s time to fund your account

To add money to your solo 401(k), you have some options. You can use your business income, or you can rollover funds from other retirement accounts into this new one. Rolled over funds are tax-deferred, which makes this a great option for getting started. 

Step 6: Choose your investments

This is the fun part! Now that you’re up and running, you can choose from plenty of investment options, including multifamily apartment investing. Putting your savings to work is a great way to fund your future and grow long-term wealth. 

Step 7: Stay compliant

Compliancy isn’t the sexiest term…we know. But taking full advantage of your solo 401(k) benefits requires staying within your contribution limits, filing the necessary paperwork, and keeping the right financial records. It’s all pretty straight forward, having a good financial advisor will certainly help with this step. 

Ready to skyrocket your investment returns?

Okay, let’s recap for a sec…

You now know all about the enticing benefits of using a solo 401(k) to invest in multifamily apartment syndication, and you know the exact steps to setting up your very own account to get started. 

The only thing left to cover is how to actually start investing! 

Just like when it comes time to choose your solo 401(k) provider, choosing the right syndication team is a big decision. Don’t just toss your retirement funds at any apartment syndication deal that comes your way, okay? 

Instead, take time to do your due diligence. Look for syndicators with a proven track record, who prioritize honesty and transparency, and who you actually want to be around and spend time with. 👌

Yes, the personal side of this is important too, trust us! 

The right syndication team will help you achieve growth – both personally and financially – while guiding you to your investment goals. 

We’d LOVE to be that apartment syndication team for you, and are here to answer any questions you might have. 

Click here to learn how to invest with the Kitti Sisters! 

That financially free future you’ve been dreaming about? 

Here. You. Come! ✨

Chart by:  Bloomberg

Could REITs be the hidden gem in the stock market? That’s what a BofA analyst believes. Real estate ended up as the second-best performer in the S&P 500 last month, just behind information technology (AI). For context, the S&P 500 rose by 9% in November.

👉 Surviving Real Estate Wreckage: Meet Players

⭐ Nashville’s Comeback: Hot Homebuyer Destination

📰 Senior Housing Crisis in the U.S.

👀 Residential Conversions vs. Commercial Survival