This may have been asked, but I wanted to get some of the latest feedback considering current market conditions. I have access to some funds from my 401k, about $3000, and I'm wondering if that's a realistic amount of money to start out with. My primary thoughts are to used some of these funds to structure the business, pay some internet and marketing overhead, and use funds for EM. Is this a good strategy? Are there better strategies? Obviously $3K isn't really enough to use for down payments or fully fund a purchase, but I do have a few people that I am working with. I already have an LLC from a previous consulting business, though it's currently "administratively resolved", a simple fix by filing the state fees. And I am establishing a business checking account in the next couple of weeks.
I'd love hear some feedback.
With $3k what I would do is buy a partial note which are payments for a year and get back 10-12% and find ways to continue to contribute to your retirement plan. Also I assume your not taking the money out and paying interest on it as with that amount I would not recommend it
@Chris Seveney how and where does one buy a partial note?
@Chris Seveney , I'm not doing directly from the 401k. It's a loan from the account. I'm primarily looking to get the startup cash in place to set up all of the back end, do marketing (FB, signage, websites, etc.), and have cash for earnest money to tie up wholesale deals. I'm not looking to fund transactions, necessarily and I have some partners I'm working with who are already in the business.
Of course as I build this, I'll move into bigger deals because I'll have more capital reserves. But that's not where I'm starting.
@Jason D. , not looking to start off with BRRRR just yet, though I have partners who might help fund those types of deals.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing