I am 46 and want to get started as a landlord. How do I start without any real personal savings outside 401k?

Planning for retirement and need to build a meaningful portfolio to survive us and pass to our special needs son.
In Buying Property - Asked by Jim B. - May 6, 2014
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Answer(s)

A S.
Owner/Investor
Atlanta, GA

Try Crowd Funding. There are plenty of websites to facilitate your presentation of idea or project. http://en.wikipedia.org/wiki/Crowdfunding

May 6, 2014
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K K.
Owner/Investor
San Jose, CA

hi Jim,
Your decision is smart and a good one. Of course you have several options (outside of 401k).
I am not sure which City / State do you live but OH, PA, IN are all strong rental markets with reasonably priced homes (older ones). but try not to buy fixer upper / too old ones which require tremendous maintenance. If you can bootstrap 10,000 to 20,000 $ you can land up a local deal. Don't expect the very first deal to be too profitable but a good start and experience for you.
Funding for your 1st property: If you have a decent credit score try a CREDIT UNIONS (not the BIG B.S Banks!) or other lenders of repute.
Make sure the TITLE IS CLEAR and you get WARRANTY DEED on the property AND the land on which the property sits. Go with a good title company who will take care of everything including escrow until closing and an agent. If you know someone well who you can trust, and who is into real estate take him/her with you.
I wish you success in your venture

May 6, 2014
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Max L.
Broker/Agent
Brooklyn, NY

how much do you want to make before you kick the bucket? reasonable question that a financial planner never asks.

May 7, 2014
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Jim C.
Owner/Investor
Appleton, WI

Even if you have personal savings I don't recommend using it...use other funding sources, seller financing, private money to start out with if you can...always depends on the deal! Have to buy right from the get go. Get educated as much as you can, but then take massive action! I recommend Alan Cowgill's course on private money, and no, I don't receive any referral from that, thanks!

May 7, 2014
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Jim B.
Researcher
Brooklyn, NY

Thank you to those who answered my question, I have taken something from each of you. I live in NJ which is a difficult rental market depending where you look. I am near Jersey Shore.
How Much am I looking for? Enough cash flow to be able to stay in NJ for retirement. I figured about an additional $50K on top of current projected savings. However, would very much consider nearly retirement with twice that :)
I could boostrap some cash, bit likely wouldn't do the crowd funding gig....then again maybe I haven't researched that enough yet.
Thank you for the specific advice in clear title, etc, and to Jim C for Alan Cowgill reference, will look into.
What do you guys think about doing real estate in a self directed IRA rollover from 401k?

May 12, 2014
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