No, No, Not on your life. - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on October 08, 2003 at 23:12:16:
DDD, this is a highly personal decision, but I don’t think it would be a good idea to place your retirementment funds a risk in this manner.
Many people who start out with the best of intentions, fail to follow through and actually succeed at the mobile home business. Like many business plans, it sounds so simple but most people just don’t make it. When they fail or give up they just disappear from this board and we never hear from them again. Those who post regularily here are the remaining top 5%-10%, in my opinion.
Would you risk your life’s savings (for retirement) if you were in Las Vegas spinning the wheel, if you thought had a 90% chance of going home broke?
You DON’T stand a 90% chance of going broke doing Lonnie deals but I still maintain that only 5%-10% of the starters ever reach the finish line, of their first completed deal.
I’ve often said that nearly anyone can succeed in this business with enough effort but I am a realist and recognize that probably a good 90% + of the beginners just don’t make it. I would advise that you be VERY conservative with your 401k retirement account. Don’t use it to experiment in a new venture to see if you can make it work or not.
It would be better for you to take another job, especially if you can find enough spare time to still do mobile home deals. Support yourself from your earnings and most important of all, support your first 3-4 deals from your earnings too. Do NOT borrow money for your deals until you have done 3-4 successfully first. Once you have proven you can do it then I think it might be OK to borrow a little money, but still don’t risk most of your retirement nest egg. I agree that you probably should get rid of the credit card debt before you do anything. Keep your card though and keep your credit as good as you can. If you need money for a deal it woud be 100 times better to get it on an unsecured credit card than to withdraw it from your 401k. If heaven forbid, things should get hairy, your 401k will be exempt from creditor attachment.
RV living might be ideal for you, not being married. You will be able to move around easily to find a good job and you will also be free to move to greener pastures searching for Mobile home deals. And you sure can’t beat $30 per month for rent and utilities.