Hard Money Lending from SEP IRA

[Paul Passafiume]

Ok, so here is some info on me to help you decide. I am young and pretty aggressive. I am in the 33% tax bracket and real estate invest on the side. I have about 250k in a SEP IRA and a friend who is a builder who wants to invest in urban neighborhoods where millenials want to live...but banks are afraid of. I don't plan to tap retirement cash for 30 years and have liquid capital outside my SEP.

Has anyone lent anyone money from their SEP IRA? If this is set up right, are there any potential risks? How do you do it?