While sophistication of your equity partners (private money lenders) will vary between residential and commercial, the principle of raising private capital is the same.You need to develop your own system which allows a constant stream of PML even when you don't need the funds and/or don't have an active deal under contract.For example; I raise private capital by offering free educational workshops for people with self-directed IRAs.

NEVER CONVERT CASH in YOUR IRA or 401K into ROTH!!!

I have a self-direct IRA and could use some passive options.

As a US citizen I have an SSN, file taxes every year on my foreign employment income, hold US-domiciled assets (stocks, IRA, 401k), and I have a ~15 year credit history with a decently high score.

One consideration as you are working on locating private lenders, is that IRA, 401(k), and other retirement accounts can be used in many cases to make private money loans.

It's simple interest income (unless you do it in an IRA).

Contributing to a Solo 401(k) or SEP-IRA can reduce taxable income, and Section 179 or bonus depreciation lets you deduct equipment costs upfront.

It’s my brother and 2 good friends that have some experience. the money lender would be a family member of mine lending out of their self directed IRA so they will be lenient with us.

The way I'm looking at it, if my spouse and I only do employer matching for the 10 years we would have more than enough in there and still 10 years out from being able to access it.I do plan on doing 401k loans for deals if the numbers check out, and I've considered rolling over some of our 401ks into roth IRAs to access our contributions but we'd have to pay taxes out of pocket (a big hit to cash flow) and we couldn't touch it for 5 years.  

Biggest gains are if you do it out of your IRAs.