When does lending become feasible $$$

[Trevor Lohman]

Sorry if this had been asked already,

I'm just curious:

At what point do you have enough money in a self directed IRA to consider lending?

I've seen lending from an SDIRA talked about quite a bit, but I'm assuming you have to have at least 100k or more to think about going that route correct?

Let's assume you're willing to lend in any market where you'd be willing to also buy a rental. So in my case that could mean homes down in the 50k+ range. 

Do you just need to have the purchase price minus whatever the downpayment is? 

Speaking of which, what is the typical down payment on a private money loan from a SDIRA? 

Thanks for any info guys!

[Carl Fischer]

@Trevor Lohman

Your question is good because it shows you are learning. Education is key to a successful Fonacial plan. I have seen  many small accounts get into lending with self directed IRAs with much less than &100k. 

Checkout or follow @Dave Van Horn who can show you how to buy discounted notes at pennies on the dollar with significant upside. 

@Brian Adams almost always has a deal going that requires some money equity or debt. 

There are many areas that 10k is a minimum loan size.  I have also seen family members combine several accounts together and make a loan. Other examples include business loans with AR as collateral. Don't forget peer to peer lending like lending club 

We have clients lend money for small rehabs on properties, to buy a car, to secure a contract and then wholesale it. 

@Michael Plante makes some interesting points. 

The fees of an administrator with a "little money" could eat into the profits. It should be considered.  Good luck.