Pulling cash from my retirement fund

13 Replies

Hi Everyone.  I'm about to leave my W-2 job.  I'd like to move some of my retirement savings into MF.  I prefer MF over SF.  The problem is, even though I have about $250K to invest, I will no longer have the W-2 income to qualify for financing.  Should I partner with an experienced MF investor?  Should I just pay cash for SF, and defer my MF aspirations?  I would appreciate any incite.  Thanks!

@Greg Allen what you may have realized is that there is very low inventory on the market for sale in the MF arena. Buying multiple SFR is an alternative. With $250K to invest, you can get about $1M of property. There are not many MF properties for sale. If they are, they want full price for them and the numbers may not work. What I find sometimes is a tired or deceased landlord that owns 17 SFR properties is ready to sell. If the numbers work, consider investing in that.

@Greg Allen I would suggest taking the $250k and placing in some solid multifamily syndication projects in growing markets. I've invested in B-class, value add assets that are stabilized with cash flow the day of closing. 

There are some additional steps to consider when trying to buy a property with your own SD-IRA. It can be done but much counsel would be needed to make sure you don't violate any of the IRA rules.

Thanks for the replies. I am not pulling money from a SD IRA. I'm an old fart, and have full unabated access to my retirement funds. I don't like the stock market, and want part of my money in real estate.

@Greg Allen

You said, you're leaving your job but you didn't mention the reason. So not sure whether it is retirement, or another job, or full time RE investor career or something else. Your investing strategy should be derived based on what it your main goal at this point. 

On a separate note, you can find a way to buy MFH as you said by partnering with someone if this is your goal. But again your steps should be derived based on your objectives. 


@Greg Allen You really need to decide if this will be a passive or active investment. Like Alina said, if you plan to become a real estate professional, I would find someone to partner with to get experience and maybe buy something small to get your feet wet. 5-20 units can give you a good understanding of the business within your budget. 

If however you are looking for something that is completely passive, start doing some research about who is a player with a successful track record that you can feel comfortable working with. There are plenty of syndicators doing deals that you can get into. Try going to a seminar or joining a local meet up. Even a passive deal will give you an education if you ask to be involved.

@Greg Allen congrats on leaving the w2 and for wanting to go with MF.

I would definitely encourage you to go into MF (12 units an up) and not into SF. There are plenty of deals out there, however, a lot of them are overpriced, so you will have to be patient and submit a lot offers.

I agree with @Derek Gibbs , the answer depends on how much time you have and what you want to do with it. Do you want to actively manage your MF, or do you want to just put your money to work and get 8-10% on your money. If its the latter, just self direct the money with a syndicator that you trust, sit back, relax and get your check in the mail every month.

Invest Differently,


@Greg Allen

Check out @Brian Adams he does a lot of MF. you can also meet a lot of the BP community in Philadelphia in October at the mid Atlantic summit that would also provide a lot of knowledge and expertise. I highly recommend it if there are any tickets left. 

Instead of pulling your retirements out, move them instead to @Carl Fischer 's company and then invest in syndications or lend the money.  I just saved you $25,000 in penalties and at least $25,000 in taxes.  The money I just saved you, you can lend to me. :)

@Greg Allen no way bro expand as fast as possible and safe . I would continue to look at mf because most lenders look at the performance of the building in essence you're buying the business so the business can without your income generally won't find you