From Company 401(K) to current passive income.
Hey BP, I'm looking for some advice.
I currently have a full time job with a chunk of money in my 401(K). I'm getting tired of the corporate world and want to get more into the investing world for passive income. I already have 3 rental houses held in a LLC that cash flow nicely. I'm a long term buy and hold guy, I may never sell any properties.
What is the most efficient way to transition from 401(K) to current passive income?
I assume I'd have to quit and get another job to get hold of my 401(K).
My thought was get another job, open a self directed IRA, deposit the 401(K) and look for seller financing deals. I will do some direct marketing to find non-owner occupied free and clear properties. As I find seller financing deals, I can take the down payment from my self directed IRA (and pay taxes plus 10% penalty - I'm 48), buy the property in the LLC's name and have the rents go back to the LLC?
Is this the best way to go from 401(K) to current passive income?