Unlike a SBLOC I mentioned above, the money you take out as a loan from a 401k is no longer invested in the stock (or bond) market.

I read the California template... it's got no teeth whatsoever.

Apparently, neither lawyers nor escrow companies are generally bonded for more than $50,000? 

@Bo Bond Thank you for the insightful answer.

You could plan to be able cover debt servicing for 6-12 months, maybe park the capital in safer and easier to exit investments like bonds.

Whether real estate, stock dividends, bond yields.

If I decide to invest in say a SFR and for some reason none of the 3,262,000 SFR on the market can a deal be made with, I can invest my money in commercial property, real estate syndications, REITs, real estate notes, real estate note funds, money market funds, index equity stock funds, bonds, and about 10 million other investments, to obtain the ROI I seek.A benefit of making an offer good (or GREAT) for you and not worrying about what the seller wants or needs (at least in your initial offer) is that if you get a quick “no” you can move on to the next deal without wasting a month negotiating a deal that has no chance to close.  

Instead of the 60/40 stock to bond portfolio, I'd like for real estate to replace the bond portion.

Stock Market and Bond market are the best right now.

Hi Jaden,I'm not a fan of hybrid turnkey models like the companies you mention.Also, not a fan of many turnkey marketing companies.Granted, I'm bias but if anyone is interested in turnkey just go straight to the provider.Not many around these days anymore and the one's that are, have stood the test of time and are obviously solid.I think it's less riskier nowadays to invest in turnkey properties than before because all of the poor providers have disappeared and only the good one's are still around.Plus, seems like the "hands off" and so beloved syndications are going belly up so turnkey might be in fashion again.And no big deal IMO that turnkey is not completely "hands off".Is anything completely passive other than 30yr Treasury Bonds?