Use Part Of My 401K For Down Payment On 1st REI Property?

Question

I have a brainstorm idea. The primary reason that I'm on here at a minimum is to create passive income for when I'm forced to retire. I have a 401K that is in the lower 5 figures. At this point I don't have much else other than SS. I've been on here for a long time watching podcast after podcast and reading book after book. I thought I could put some of those funds to better use by using it for my first property down payment as would be required by a hard money lender via the Brrrr strategy. Just finished watching Podcast 200 with Brandon And Josh; A Step By Step Guide To Buying Your First REI Property

I'm 62 and my health is great so far. Nothing is stopping me from moving forward one way or another. I want out of trucking and I want to be home with my wife everyday

Any thoughts are welcome

Thank you

I'm 62 and my health is great so far. Nothing is stopping me from moving forward one way or another. I want out of trucking and I want to be home with my wife everyday

Any thoughts are welcome

Thank you

Ray Evans · Answer

@David Klem I basically cleaned out my 401k to invest in real estate.I’m 53 and have been flipping houses since covid started.I used the cares act to save the 10% penalty.

David Klem · Answer

Effram,

Yes, I have a W2 job. If I don't build some kind of passive income, I can forget about retiring comfortably. Too many mistakes through the years. I just learned of REI in the last 4 years. I don't see any forced retirement on the horizon. I'm a vegan and have great energy and health for my age. I have no other choice but to try and move forward late in life. I'm confident that I can pull this off. I have 2 vegan acquaintances who are doctors. They are well in there 80's and still practicing medicin

David Klem · Answer

Wesley

I haven't withdrawn any of it yet. What's in there isn't going  to go very far. I figure I have nothing much to lose

Wesley I. · Answer

@Ray Evans

Did you do the 401k without penalty last yr or this year?

Effram Barrett · Answer

Do you have a W2 job currently?

I would normally think this is a great idea, but you're so close to retirement age that you would be in a horrible spot if things didn't work out. This would essentially be putting your eggs in one basket

Use Part Of My 401K For Down Payment On 1st REI Property?

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