How To Use Retirement Accounts to Invest in Real Estate (Without Extra Cash)
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Episode Description
On this episode of the On The Rise Podcast, host Jeremy Dyer talks with Tony Figliola, founder of Passive Investment Pros, who helps engineers and technical professionals diversify beyond the stock market into private multifamily real estate. A mechanical engineer himself, Tony shares how he moved from trying to operate deals solo to building a rigorous vetting process for investing passively. The conversation digs into the non-negotiables when evaluating operators and deals, the assumptions that make pro formas unrealistic, why analysis paralysis holds smart investors back, and how retirement accounts can be repositioned into real estate. A practical listen for analytical investors weighing their first passive deal.
Summary
An analytical mindset is built for passive real estate.
Tony focuses on engineers because their systems-oriented thinking mirrors how he approaches investing. Breaking deals into digestible, repeatable steps — market, operator, financials — helps analytical professionals get comfortable with an unfamiliar asset class.
Vet the operator before the deal.
On any deal, Tony looks at the operator first, treating track record and performance as the best indicators. A newer operator without a track record isn't an automatic no, but it means the market and financials need to be far more locked down.
Scrutinize the assumptions, not just the returns.
Tony digs into whether cap rates are justifiable, whether organic rent growth sits in a realistic range, and whether expenses like insurance and property management are unrealistically low. Returns built on 10% annual rent growth are a red flag.
Don't take the marketing package at face value.
A 25–30% IRR looks great until you trace where it comes from — often aggressive rent growth, understated expenses, and renovation timelines that aren't realistic. Digging beneath the glossy numbers is where Tony adds the most value.
Beware analysis paralysis.
Smart investors can get lost in the numbers waiting to understand every variable — a point that never arrives. Tony argues you have to get comfortable moving forward with some uncertainty while using conservative underwriting to mitigate the risk.
Vertical integration tightens control and lowers risk.
When management and construction are in-house — especially at a company that's executed the strategy many times — there's tighter control over timelines, budgets, and costs like master insurance policies. It's not a deal-breaker if absent, but it adds a cushion investors value.
Communication is a defining operator trait.
Even strong operators hit headwinds, so what matters is whether they're honest, open, and quick to inform investors rather than "ghosting." Since you can't fully know an operator until you've invested with them, relationships and trusted references carry real weight.
Retirement accounts can move from Wall Street to Main Street.
Many W-2 professionals have most of their nest egg in 401ks and IRAs. Through self-directed accounts, those funds can be repositioned into real estate and private assets — well-suited to deals that tie up capital for two to five years.
Resources
Website: PassiveInvestmentPros.com
LinkedIn: Tony Figliola
