Want to Start Investing in Real Estate But Don’t Think You Have the Cash or Credit?

Podcast: Download (Duration: 13:07 — 12.8MB)

Most people I have spoken to last week are from emails, Facebook comments and Twitter replies that commonly say, “I hear you! I’d like to look into investing in real estate and would like to start…but I don’t have the credit score OR the cash!”  I understand you, so here is a question I pose right back.  What if I told you that you may have unused, sometimes-forgotten-and-overlooked set of assets that can be repositioned to help you get in the real estate game?

Would you like to know what it is or where to find it?  This podcast from last weekend’s Real Estate on Radio Show on WLS 890 AM will explore your alternatives.

In the meantime, look at your retirement plan.  More specifically, look at the cash built-up, or leftover, within your IRA and company 401(k) plan.  Without getting into too much detail about how to get your money from your 401(k) to invest in real estate, you would have to conduct an “in-service distribution”. In other words, the plan documents of your employer-sponsored 401(k) plan may allow you to take control of your 401(k) contributions, vested company match and transfer it within your own self-directed IRA.

If that is too much a hassle and difficult to comprehend, how about looking at the 401(k) retirement plan(s) you may have left behind from a previous job(s) and have yet to roll it over into an IRA.

Often times, people have looked upon this retirement plan as another form of emergency fund in order to get them through tough times.  You, too, may have heard people around you looking to borrow from their 401(k) plan to meet immediate needs…unfortunately.

Others are looking to recoup the losses they have experienced from this recession.  However, being overly defensive and keeping your cash inside these accounts is not your only option.

“But my investment advisor, financial planner or 401(k) consultant on the help line told me to sit tight and keep my cash there…it’s for the long haul”, some people say.

Sure, convenient advice for those in their early 20s-40s.  But what about those with kids in college or looking to retire soon?

“I have properly diversified my account into different asset allocations that is supposed to reduce further risk!”, others say with a glimmer of hope in their eyes.

Yes, but is it all just diversified with the same general investment type?  Is it just a different stock, bond or mutual fund this time around?  Diversification is more than just reinvesting your money in a different way within the same classification of savings and investments.

On the show, I inform homeowners and real estate investors about the sad truth from people who entrust their total confidence for their retirement through their company retirement 401(k) plans.  A 401(k) plan is NOT your retirement plan, it is only part of the complete big picture, a component such as your Social Security, pension, personal savings and business ownership, put together.

Don’t be overwhelmed…increasing your financial literacy and education is a process.  Once you become aware of your alternatives and options, it is easier for you to act and do something about it.

Top Financial Interviews CD Vol I: Please consider purchasing this CD which is a compilation of the top financial interviews after meeting with over 120 financial planning and business experts. Proceeds of this CD not only help build your financial library but enables us to do charitable outreach in our community.  Here’s an example – CLICK HERE

MONEY SMART COACHING: We are able to direct you to a wealth-building coach to take advantage of a free, complimentary 30 minute coaching session through our three-step, MoneyN’Motion process  . Whether you want to get out of debt, invest in real estate, make sure you are on track with your financial decisions, explore ways to take advantage of real estate investing or just need a little help along the way, we’d love to work with you. We are able to coaching you along screen sharing technology during our call which makes it just like we were sitting there next to you with our computer. If you are interested, email us at [email protected] or call us at 708.686.2000.