Here’s a simple wealth strategy you can easily implement by using your IRA or 401K and real estate investing.Step One- Roll your funds into a self-directed IRA (Individual Retirement Account) The first thing you need to do in order to combine your IRA or 401K and real estate investing is to roll your available funds over into a self-directed IRA. This is nothing more than a regular IRA account administrated by a company that allows you to determine specifically how and where the money is invested.A Self-directed IRA, also known as a Checkbook IRA, allows your funds to be placed into a checking account, giving you far more flexibility and “liquidity” than with typical retirement accounts. You can then use the funds by simply writing a check, combining your IRA or 401K and real estate investing.There are several sources and providers of self directed IRA accounts. Use online search resources for assistance in locating them. One such company, highly respected for combining your IRA 401K and real estate investing, is Equity Trust Company.Step Two- Determine your investing criteriaBefore you start using your IRA or 401K and real estate investing together, it’s important to think through your investing criteria. What kind of real estate investor do you want to be? Do you have the temperament and financial resources to hold and rent property, or are you better suited to quick-turn real estate? Does rehabbing suit you, or are pretty houses more in keeping with your skills and abilities?These are vitally important questions, and the time to ask and answer them is before you start using your IRA or 401K and real estate investing.There are lots of online resources for helping you make these kinds of decisions. I’ve written another article that can help you determine which type of investing is right for you. You can find it at Best Income Opportunities.Once you’ve determined the type of investing you’re suited for, you’ll know what types of properties fit that criteria, and you’ll be ready to start using your IRA or 401K and real estate investing.Step Three- Locate a property that fits your investing criteriaNow is the time to hunt for properties that fit the investing criteria you’ve established for yourself. When you’re just beginning real estate investing. I would stick to single family homes and small multi-units (1-5 units). Leave the larger apartments and commercial properties until after you’ve gotten your feet wet in IRA / 401K and real estate investing.Find and work with a good Realtor who can help you locate properties that work for you. Look for value in your real estate investing… in other words, buy for well under retail. Buying value is the secret to success in this business, and builds instant equity.Step Four – Let your Account Administrator walk you through the first few transactionsThe companies that administrate self directed IRA accounts know their business well. They have a vested interest in helping you succeed with IRA or 401k and real estate investing. Make use of their expertise and let them hold your hand through the first few purchases you make. They will help you avoid landmines you would never see otherwise.You will need to follow the specific rules for IRA or 401K and real estate investing, and one of those rule is that all monies paid related to your property must come from the self-directed account. That means that every expense, no matter how small, must be written out of your self-directed IRA checkbook. Also, the property must be bought, sold, and held under the self-directed IRA.You can see from these two examples that the rules can be complicated, although not so complicated that you should let it stop you from investigating this exciting and lucrative investing niche. After all, by combining your IRA or 401K and real estate investing, you can watch your nest egg grow exponentially, while avoiding the tax man’s big bite.That’s it… four simple steps to building wealth using the incredibly powerful combination of your IRA or 401K and real estate investing. As it says on the shampoo bottle in your tub… lather, rinse, repeat!Now, go make more offers!