All Forum Posts by: Jonathan Newlin

@Keith A. That is good insight and easy for me to forget. I know the value of diversification and plan on contributing to some other form of investment other than real estate but I need to keep that in the front of my mind. Thanks for the input!

@Michael A. That is great to hear you guys are on a healthy path! And congrats on the new child. We just had our second 3 weeks ago. Thanks for the detailed response its helpful to see others situations and how they tackle what is important to them. Best of luck to you!

@Michael A.

Thanks for the insight into your strategy. I agree with the cash to the side for REI budget. I would like to know though are you contributing more than what your employer matches in your 401K? And if so why? You say heftily, what percentage of your paycheck do you contribute. I am not against saving I just am unconvinced at this point that pouring funds into a 401K in my situation will help me save quicker to dive into REI. Again thanks for the insight and good luck finding your first deal!

@J. Lancaster

That is an option in the future but the amount currently in my 401K is very small since I just started contributing. My question was regarding if I should take the cash and invest freely into RE or should I put cash into 401K and eventually use it the self directed 401K route. So basically should I divert funds and tie them up into a slow money generator or should I take the cash as I have it and hustle to produce a higher rate of return money generator. (Again that is assuming I will become a successful investor). Thanks for mentioning the Self directed 401k though that is definitely something to consider.

@Mark Welp

I am feeling that tension of having my money locked up. Thanks for the advice!

@Scott Trench

Thanks for the thorough response and great insight! I really appreciate it. It speaks volumes to me as new member to hear directly from the biggerpockets team. Many great points I need to consider.

@Joel Johnson

Thanks for the feedback. And I agree the tax savings are enticing and I would not mind the long road approach. My only thinking is as I am starting up it divides my funds and potentially slows the start of investing. I know there are many ways to invest with "little or no money down" so dividing funds may not be a bad option. Something I will ponder for awhile longer. Thanks again for the insight!

Hi all! I am just starting out in REI and am looking at every option of saving and building capital to invest. I am 25 and contributing around $100-$200 a pay period to my 401K. I have only begun contributions last year. My question is should I withhold from contributing in order to put the $100-$200 per pay period toward? I understand the power of compound interest and the value of putting away for retirement young, however would the cash be better put into RE in the long run? I realize this is a case specific question and depends on how savvy of an investor I become in time, but would appreciate any feedback.

Note: My employer does not match

Hey Marquis,

I am new to Real Estate and love hearing these success stories after a grind. Very encouraging thanks!