Becoming a Private lender

[Neil Andrews]

I have just decided to get into real estate investing .

I am a retired engineer, 37 years at Boeing. I thought that acting as a private lender would be a good place to start. I have high six figures in saving currently invested in a 401-K that I can tap into to lend. I also own my own home free and clear that I thought I could get a HELOC on for use in private lending.

My plan is to set up an S-corp, create a solo 401-K and transfer my 401-K money into that. I have already met 2 potential investors that could be future clients, but have not vetted them yet. One, I think is pretty new to the industry and is a part of Fortune Builders (Than Merrill). The second is a guy, I just met at the gym who has been doing it for 15 years. We are planning to get together for lunch next week.

Do you have any comments about my beginnings of a plan? Is an S-corp the right way to go? Or would an LLC be better? Are there any other important first steps that I am missing? What is you personal opinion of Than Merrill's Fortune Builders? Is it reasonable to trust that people in that system know what they are doing at least to some degree? I plan to bring a list of questions to the lunch next week. What questions you ask a prospective REI when considering a new client?

Thanks for any help or advice you are willing to provide.