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Updated over 17 years ago,

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Starting out - several questions

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Hi Everyone,

I just finished reading one of the rich dad/poor dad books and I can say that I am sold on RK's ideas. I realized that working for someone else will never get me to the point I want to be at in life. I know that I have to make my money work for me and not vice versa. I've been looking around and I've come to the conclusion that real estate is where I want to be due to the massive potential for passive income.

Now, a little bit about myself: I am 22 years old living in Hoboken, NJ and I will be graduating with a BS in Comp Sci this may. I got lucky and lined up a very high paying job in my field (75k per year + bonuses) and I will start working there this summer. I have a little bit of money saved up, but it is nowhere near enough to make meaningful investments in real estate.

My question is... how do I get started? I've been reading a lot as part of the 'education' process. I know that I have to be familiar with the terms used in RE and the general flow of things before I get started. When do I switch gears from learning how RE works to applying that knowledge to make money? What is the best way to get started? Dive right in and buy a property and hope it makes money? Should I wait and see how things are in the market? I think that trying to find a mentor would be the best way to start, but I have no idea where to look for someone that would be willing to do that. Another thing to note is that property values in my area are quite high, which means a high down payment and more consequences should things go sour if I dive right into it.

And my final question, on a slightly unrelated note, my company offers 50% matching up to 15% of my salary on a 401k. Is it possible / worth it to max out my contributions and then withdraw from my 401k? I'm trying to find a way to get at that 'free money' so I can use it in other investments.

Thank you,
Alex

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