re: 401k loan to fund a potentially profitable investment

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What is investment sector?

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Petrochemical Transportation

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What is the equipment?

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Barge & Tugboats. Two 30k hot oil barges. Two 30k clean barges. One tugboat.

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How is he turning profit?

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Based on the example I provided from one investment, he has made 60% of his initial investment back within three years. Keep in mind that this is the lowest performing investment yielding roughly 18.5%. The other example I provided has the equipment paid off in it, I assume he has made his money back of $15k (probably several times) and based on the past three years alone he has made roughly $40k. He operates all of these by just snowballing the money into the next investment. He said based off of his other barge investments, he was able to put $85k into the last one. This yielded him a $24k loss on his taxes which offsets the taxable gains from the other investments.

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Will you be competing against him?

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Yes & No. I guess technically we're all cutting into the same pie; however, participation varies with each investment group.