7 Smart Ways to Use Your 401(k) to Invest in Real Estate — and Partner with Comfort Living & The Solomon Group

1. Rollover into a Self-Directed IRA, then buy real estate

Traditional 401(k) plans rarely — if ever — permit holding real estate directly. Madison Trust Company+2Farther+2
The solution: roll over (transfer) your 401(k) into a self-directed IRA (SDIRA). That puts you in control. Once funds are in the SDIRA, you can direct them into real estate investment — residential properties, rental homes, land, even commercial properties depending on the custodian. IRA Financial+2Directed IRA+2
This rollover — done properly — avoids taxes or early-withdrawal penalties. IRA Resources+2IRA Resources+2

2. Use a “Self-Directed Solo 401(k)” (if eligible)

If you’re self-employed or own a small business (or side business) you might qualify for a Solo 401(k). These self-directed plans often allow real estate investments directly, giving you more flexibility than a standard employer-sponsored 401(k). American IRA+2IRA Resources+2
That means you can fund — with pre-tax dollars — rental properties or other real estate. Income from rent or appreciation remains tax-deferred (or tax-free, if using a Roth version). Farther+2IRA Resources+2

3. Rollover / Transfer from Old 401(k) to SDIRA — partial or full

You don’t have to roll over 100% of your 401(k) — many investors choose to move a portion to a self-directed IRA, leaving the rest invested in traditional funds. This hybrid approach lets you diversify: keep part in stocks/bonds, and allocate the rest to real estate. The Entrust Group+2Directed IRA+2
This flexibility lets working professionals — say, a doctor or police officer — dip a toe into real estate while still maintaining a conventional retirement portfolio.

4. Use cash from the SDIRA to acquire rental or distressed properties, then partner with investors like Comfort Living

Once in a self-directed retirement account, funds can be used to buy real estate. Typically, the property title will be held under the IRA/custodian name (not personally). Directed IRA+2WCG CPAs & Advisors+2
This is where a company like Comfort Living Buys Houses becomes valuable. Based locally in Springfield, Ohio, Comfort Living specializes in buying, rehabbing, and managing distressed, vacant, or problem homes across Springfield, Dayton, and the Miami Valley. Better Business Bureau+2Comfort Living Buys Houses+2
As investors, you could use your SDIRA funds to buy a property — then have Comfort Living handle renovation, management or resale, tapping into their local market expertise and rehab know-how.

5. Partner with a local real estate team (The Solomon Group + Comfort Living) for streamlined investing

The Solomon Group is a real estate agent team with Coldwell Banker Heritage serving Springfield, OH and surrounding areas. Coldwell Banker+2Coldwell Banker+2
By partnering with The Solomon Group and Comfort Living Buys Houses, you get local expertise — from property sourcing to renovation and resale or rental management. That can help busy professionals (like doctors, police officers, military personnel) invest in real estate without having to manage day-to-day rehab or tenant issues themselves.

6. Potential for higher, double-digit returns compared with traditional retirement investing

Real estate — when done right — can outperform traditional stocks/bonds, and also offer a hedge against market volatility. Some investors see rental income plus property appreciation over time leading to double-digit annualized returns, especially if rehabbing or value-add strategies are involved. Many financial guides on SDIRAs highlight real estate as a top alternative asset for diversification. IRA Financial+2WCG CPAs & Advisors+2
Using retirement funds (SDIRA) to buy property avoids paying taxes now, letting compounding growth work over decades — a powerful benefit for long-term investors.

7. Use SDIRA to invest in flips or rehabilitated properties (house-flipping), especially with a partner experienced in rehab & resale

Because your SDIRA essentially owns the property, you can buy a distressed home, rehab it (via a third-party rehab company, not yourself or other “disqualified persons”), then sell it for a profit — with proceeds going back into your retirement account. Directed IRA+2Equity Trust+2
Using a local house-buying and rehab company like Comfort Living Buys Houses (with renovation and resale experience) makes flips more feasible. Their home-buying business model emphasizes buying "as-is" properties, often distressed, renovating them, and offering cash homebuying services. Comfort Living Buys Houses+2Better Business Bureau+2

✅ Why This Strategy Can Work for Everyday Professionals (Police, Military, Doctors, Business Pros)

• No experience required — You don’t need to be a real estate expert. With partners like The Solomon Group and Comfort Living, much of the heavy lifting (finding properties, rehab, renovation, resale/rental or property management) is handled for you.

• Tax-advantaged investing — By using a self-directed IRA or Solo 401(k), your retirement funds can grow tax-deferred (or potentially tax-free) while invested in real estate, just like they would with traditional assets. IRA Financial+2Madison Trust Company+2

• Diversification & stability — Real estate often behaves differently than stocks and bonds, offering a hedge against market swings. Rental income and property value can provide more stable long-term returns. WCG CPAs & Advisors+2Emparion+2

• Flexibility — You don’t have to commit your entire retirement balance. You can roll over a portion, invest in one or more properties, and keep the rest in traditional retirement assets.

• Hands-off option — Because Comfort Living Buys Houses handles rehabs, property condition issues, and resale or rental management, this is not a “DIY landlord hustle.” It becomes a more passive or semi-passive investment — ideal for professionals whose time is limited.

⚠️ What to Know Before You Dive In: Rules & Limitations

• Not all 401(k) plans allow a rollover while you’re still employed — check with your plan administrator. The Entrust Group+1

• Once funds are in a self-directed IRA, you must follow IRS rules strictly: the IRA (not you) must hold title, and you cannot personally benefit from the property (no living in it, no letting family members use it free). Directed IRA+2Equity Trust+2

• All income (rent, sale proceeds, etc.) must go back into the IRA, and all expenses (maintenance, taxes, improvements) must come from the IRA. You can’t use personal funds for repairs or spend money on the property outside the IRA. Equity Trust+2Directed IRA+2

• If you finance the property with a non-recourse loan, you may trigger Unrelated Business Taxable Income (UBTI), which can create tax implications. Equity Trust+1

Because of these rules, many investors use a trusted, experienced local partner — especially for rehabs / flips / rentals — to make sure everything is done properly.

📞 Why Comfort Living & The Solomon Group Are a Good Fit

• Comfort Living Buys Houses is a local, family-run company that has been buying, rehabbing, and reselling distressed or problem homes in Springfield, Dayton, and the Miami Valley — including inherited properties, vacant homes, or foreclosure situations. Better Business Bureau+2Comfort Living Buys Houses+2

• The Solomon Group (with Coldwell Banker Heritage) provides real estate services in Springfield and surrounding areas — adding legitimacy, market knowledge, and a full-service approach. Coldwell Banker+2Realtor+2

• For busy professionals — law enforcement, military, doctors, business owners — this partnership means you don’t have to manage every detail. You get access to investment-level real estate without becoming a full-time landlord or contractor.

🚀 Ready to Get Started? Here’s What to Do

1. Check your 401(k) plan: see if it allows rollover.

2. Open a Self-Directed IRA (or Solo 401(k), if eligible) with a custodian that allows real estate investments. IRA Resources+2Madison Trust Company+2

3. Roll over funds from your 401(k) to the SDIRA (direct rollover is simplest and penalty-free) and fund the account. IRA Resources+1

4. Contact The Solomon Group / Comfort Living — they can help identify real estate investment opportunities (distressed, rental, rehab) that fit your budget and goals.

5. Let them handle purchase, rehab, and management/resale — while your IRA holds title and receives all income or sale proceeds.

If you’re a hardworking professional — police officer, service member, doctor, or business owner — this could be a smarter way to invest your retirement savings. Instead of leaving all your money in mutual funds, you could own real property, generate rental income or gains from flips, and watch your retirement nest egg grow — all inside a tax-advantaged account.

Interested in learning more? Give our team a call: The Solomon Group — (937) 800-4937. Let’s explore how you can turn your 401(k) into real estate investments that build lasting wealth.