How To Convert Your

401(k)/IRA to Real Estate

Without Penalty
It’s no secret that real estate has been used for thousands of
years to create massive wealth.

With the economy and markets in such turmoil, many

people are looking for better ways to protect their retirement
savings.

One of the best ways to do this is by investing your 401(k)/

IRA backed by real physical assets that provide cash flow, as
well as appreciation.

You’re probably asking… How do I go about doing this?

This guide was created to give you a step-by-step on how

to invest your 401(k) / IRA into real estate without any
penalties.
How To Convert Your 401(k)/IRA to Real Estate without penalty?
Copyright © 2023 Grant Cardone Enterprises
Cardone Publications
ISBN: 979-8-218-14547-7
All Rights Reserved.
All rights reserved. No part of this book may be reproduced
or transmitted in any form or by any means, electronic, or
mechanical, including photocopying or recording, or by an
information storage or retrieval system, without permission in
writing by the author.
All translations of this work must be approved in writing by
the author. Please contact Cardone Capital for permission to
translate and distribution agreements. Printed in the United
States of America
First Edition
About Cardone Capital
Cardone Capital acquires and manages real estate properties
with a focus on both near-term income generation and long-
term value creation. Grant Cardone, Founder and CEO, created
Cardone Capital to provide everyday investors access to the
institutional-grade real estate deals that are normally reserved
for only the largest investors.
Grant Cardone has been investing in real estate for over 35
years and has never lost money on a multifamily real estate
investment. Since 2016, Cardone Capital has raised over $1
billion across 22 funds from over 13,000 accredited and non-
accredited investors. Cardone Capital’s real estate portfolio
consists of 11,903 apartment units across 36 multifamily
properties along with over 500,000 square feet of commercial
office space.
Performance Stock Market Risk Why Real Estate? Cashflow Tax Advantages How It Works

Table of Contents

Why Real Estate Has Performaed Over

The Last 1000 Years.............................. 3
Stock Markets Are Risky........................ 5
Why You Should Invest In Real
Estate..................................................... 7
Cashflow & Appreciation...................... 9
Tax Advantages..................................... 11
How to Convert 401k/IRA to Real
Assets.................................................... 13
In Closing............................................... 15

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 Performance Stock Market Risk Why Real Estate? Cashflow Tax Advantages How It Works

Why Real Estate Has Performed

Over The Last 1000 Years
There are many advantages when converting your 401(k)/IRA
to invest in real estate. Real estate over the last thousand years
has been a stable investment that many have used to protect
wealth. Now real estate can be used to help you protect your
retirement savings from huge market fluctuations as well as
inflation.
When investing in real estate, you want to consider the six
main benefits - Cash flow, appreciation, tax benefits, leverage,
tangibility, and hedge against inflation.
Real estate has also been used as a hedge against inflation
throughout time. This is primarily due to the fact that real estate
appreciates as populations grow and they continue to need a
place to work or live.
Finally, Real estate is one of the few asset classes that is almost
always purchased using leverage. Financing provides investors
with a way to carry their investments further by using other
people’s money to purchase assets.

Real estate by nature pays investors while they wait for

appreciation, unlike other investments that only have value on
paper and at time of sale.
Ready Convert Your 401k/IRA to Real Estate?
In addition, real estate is a tangible physical asset, you can look, Text 305-407-0276 to See if You Qualify
see and touch unlike a stock or a bond. Everyone needs a place
to live or work and this hasn’t changed in a thousand years.

Unlike stocks or bonds, in most situations, real estate also

allows investors to write off depreciation and receive tax
benefits while earning income from the assets.

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 Performance Stock Market Risk Why Real Estate? Cashflow Tax Advantages How It Works

Stock Markets Are Risky

The stock market was not specifically built for retirement
accounts, but rather as a way for companies to raise capital
by issuing shares of stock. Investors then buy and sell these
shares on the stock market, with the value of the shares
fluctuating based on a variety of factors, such as the company’s
performance and overall market conditions.
In fact, these zombie companies are worth billions of dollars on
paper but have never profited one dollar.
There’s also a good chance your IRA or 401(k) is exposed to
companies you have moral objections to & a very good chance
those companies are actually headed for extinction.
The stock market wasn’t created for you to WIN!

You are told the stock market can be a valuable tool for
retirement savings, it is inherently risky. The value of
investments can fluctuate greatly over time, and there is always
the possibility of losing part or all of your money.

To manage this risk, many individual retirement accounts (IRAs)

and 401(k) plans offer a variety of investment options, including
mutual funds and exchange-traded funds (ETFs), which may
hold shares of publicly traded companies. Some of these
companies may be considered “zombie companies” - firms that Ready Convert Your 401k/IRA to Real Estate?
are barely profitable and heavily reliant on debt to stay afloat. Text 305-407-0276 to See if You Qualify

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 Performance Stock Market Risk Why Real Estate? Cashflow Tax Advantages How It Works

Why You Should Invest In

Real Estate Leverage: Financing provides investors with a way to
carry their investments further by using other people’s
There are many advantages when converting your 401(k)/IRA
money to purchase assets.
to invest in real estate. Real estate over the last thousand years
has been a stable investment that many have used to protect
Tangible: They are real assets -not paper- and cannot
their wealth. Now real estate can be used to help you protect
be easily built, replaced or destroyed.
your retirement savings from huge market fluctuations as well
as inflation.

The Main Reason To Invest In Real Estate:
Cashflow: Instead of living off of the principal in your
retirement account. Real estate provides monthly
cash flow that you can live on without the reduction of
your principal.
Diversification: When you invest in apartment
complexes you are spread out over hundreds of
doors, not just one. The benefit of owning real estate
during inflationary times is that it provides a hedge
against inflation. As the cost-of-living increases, so do
property values and rental income.

Long Term Appreciation: Real estate can appreciate

in value over time, leading to potential capital gains.
Most real estate professionals target 2x to 3x return on
investment. (This includes cash flow & appreciation)

Tax benefits: 401k/IRA plans provide tax benefits such Ready Convert Your 401k/IRA to Real Estate?
as tax-deferred growth, while real estate provides tax Text 305-407-0276 to See if You Qualify
benefits such as deductions for mortgage interest
and depreciation. Individuals should speak to their
own tax advisors or tax professionals.

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Performance Stock Market Risk Why Real Estate? Cashflow Tax Advantages How It Works

Cashflow & Appreciation

Real estate allows ordinary people to protect their hard-
earned money, and get positive cash flow, while they wait for
appreciation and pay down debt.

Retirees often prioritize cash flow during their retirement years

because it provides a stable source of income to cover living
expenses and other financial obligations. Cash flow can come
from various sources, such as rental income from real estate
investments, dividends from stocks, or interest from bonds.

Real estate is one of the popular options for retirees as it can

provide a steady source of cash flow through rental income, and
it can also offer the potential for long-term appreciation.

The ultimate goal of real estate in retirement accounts is to

protect your investment, not lose your money, and provide cash
flow when you retire.

If you showed an alien, stock certificates & real estate and

asked him which one was the best investment for a retirement
account, he would always pick real estate.

Ready Convert Your 401k/IRA to Real Estate?

Text 305-407-0276 to See if You Qualify

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 Performance Stock Market Risk Why Real Estate? Cashflow Tax Advantages How It Works

Tax Advantages*
The greatest tax advantages & loopholes are in real estate.
Stocks, bonds & commodities provide NONE.

A self-directed 401K/IRA (individual retirement account) can

provide tax advantages when investing in real estate. Here are a
few examples:

Tax-deferred growth: With a traditional IRA, capital

gains generated by the investment in real estate may
result in significant tax savings over time.

Tax-free withdrawals: With a Roth IRA, the funds used

to purchase the real estate have already been taxed,
you may be able to withdraw capital gains generated by
the investment tax-free in retirement.

Depreciation deductions: Many real estate investors

can take depreciation deductions on the property,
which can offset any rental income earned and
reduce the overall taxable income of the real estate
Ready Convert Your 401k/IRA to Real Estate?
investment.
Text 305-407-0276 to See if You Qualify

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 Performance Stock Market Risk Why Real Estate? Cashflow Tax Advantages How It Works

How to Convert 401k/IRA to

Real Assets
Converting retirement accounts into real assets, rather than
paper mysteries, is now possible. Real estate-based 401K/IRAs
have been kept a big secret because Wall Street doesn’t want
you investing in real assets, they want the fees. They want you
addicted to their casino symbols and paper products

To convert retirement accounts into real assets, you can use

a strategy called a “self-directed IRA” or “self-directed 401(k)”.
This allows you to use the funds in your retirement account to
It’s important to note that there are certain rules and
invest in real estate backed investments.
regulations that apply to self-directed retirement accounts,
Here is an overview of the process: such as prohibited transactions and the requirement that the
assets purchased with the account funds must be held by the
1. Set up a self-directed IRA or 401(k) with a custodian or custodian or administrator.
administrator who specializes in this type of account.

Ready Convert Your 401k/IRA to Real Estate?

2. Transfer or roll over funds from your existing retirement
Text 305-407-0276 to See if You Qualify
account into your self-directed account.

3. Use the funds in your self-directed account to make

investments in real assets.

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In Closing
While many retirement assets are currently invested in
traditional asset classes such as stocks, mutual funds, ETF’s
and bonds, many investors are realizing the benefits of
alternative asset classes, real estate being one of the keys
among them. It’s no surprise that pension funds and other
institutional investors continue to invest in real estate as a
way to hedge against the volatility of the stock market. As an
example, for the 12 month period ending in December of 2022,
the S&P 500 was down approximately 20% & Nasdaq was
down approximately 33%.
these costs can be generally lower than the cumulative ongoing
transaction fees associated with buying and selling stocks,
and it can offer the potential for passive income through rental
income and long-term appreciation. In addition, many of these
costs become tax deductible as part of depreciation.
In truth, Wall Street wins whether the market goes up or down,
not you.
We want you to win.

Wall Street benefits from market activity regardless of

whether the market is going up or down every time a stock
or other securities are bought or sold in an actively managed
portfolio. This is because every time a trade is made, there is
a transaction fee that is paid to the brokerage firm or financial
institution executing the trade. These fees can add up over time
and can have a significant impact on the overall returns of the
portfolio.

On the other hand, Real estate investing has one-time costs

such as closing costs, appraisal fees, and inspections, but Ready Convert Your 401k/IRA to Real Estate?
Text 305-407-0276 to See if You Qualify

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Disclaimer
Investing involves risk, including loss of principal. Past performance does not guarantee or
indicate future results. Any historical returns, expected returns, or probability projections
may not reflect actual future performance. While the data we use from third parties is
believed to be reliable, we cannot ensure the accuracy or completeness of data provided
by investors or other third parties. Neither Cardone Capital nor any of its affiliates provide
tax advice and do not represent in any manner that the outcomes described herein will
result in any particular tax consequence. Offers to sell, or solicitations of offers to buy,
any security can only be made through official offering documents that contain important
information about investment objectives, risks, fees and expenses. Prospective investors
should consult with a tax or legal adviser before making any investment decision.

For our current Regulation A offering(s), no sale may be made to you in this offering if
the aggregate purchase price you pay is more than 10% of the greater of your annual
income or net worth (excluding your primary residence, as described in Rule 501(a)(5)(i) of
Regulation D). Different rules apply to accredited investors and non-natural persons. Before
making any representation that your investment does not exceed applicable thresholds, we
encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on
investing, we encourage you to refer to www.investor.gov.

*Prior to making any investments, investors are encouraged to consult with a financial
advisor, attorney, accountant, and any other professional that can help you to understand
and assess the risks associated with any investment opportunity. IRA/Roth IRA/401k
investors are urged to consult with their own tax advisors concerning the suitability of
a Real Estate Investment, taking into account the likelihood that the investment may
generate unrelated business income tax and/or unrelated debt financed income.

For additional important risks, disclosures, and information, please visit:

cardonecapital.com/disclosure

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