Starting out private lending in CA

[Alex Sinunu]

I want to start doing private lending with my own money. The goal is to lend relatively close to my home in Los Angeles. Finally, don't want to put all my (lending) eggs in one basket. Are there opportunities to lend around $100K at a time in this area? Do I look to partner with other lenders? Appreciate any guidance. 

Alex

[Brett Synicky]

Quote from @Alex Sinunu:

I want to start doing private lending with my own money. The goal is to lend relatively close to my home in Los Angeles. Finally, don't want to put all my (lending) eggs in one basket. Are there opportunities to lend around $100K at a time in this area? Do I look to partner with other lenders? Appreciate any guidance. 

Alex

A few items come to mind.  At the risk of vomiting too much information, I'll share.   

1. Not sure where that money is held right now but if you can lend from a tax deferred or Roth environment. Solo 401k (if you have self employment activity and no employees other than spouse) would be the best. Backup to this would be a Self-Directed IRA - though because the contribution limit is so low, (7K 2024) you'd need to do a direct rollover for this to make sense.

2.  If neither of those are an option, I would consider investing in syndications.  You can get great returns and take advantage of the cost seg benefits.  

3.  Boxing yourself into your local market only is going to greatly reduce your opportunities which I presume you already know and are ok with.  I recommend attending some of your local real estate investment clubs to find people trying to raise money for local deals that you can partner with.  

Hope this helps.