What is the most common loan size you see from investors?

Question

When working with investors, what is the most common contribution/investment/loan size? I have been working with a few investors, but as I look to expand and connect with more investors, I am wondering what I should set as my minimum investment size.

I am worried that if I say "the minimum investment is $25,000" that I may lose a ton of people that may be willing to invest $10,000...but is $10,000 too small of an investment to be worth the time? Any insight or experience would be appreciated!

Drew Sygit · Answer

Are you following SEC requirements when soliciting funds and co-mingling them to invest in real estate?

Drew Sygit · Answer

Are you following SEC requirements when soliciting funds and co-mingling them to invest in real estate?

William Thompson · Answer

I see this a lot with my investor clients—$25K is common as a minimum, but it really depends on your deal structure. Too low and the admin costs eat you alive, too high and you shut out good capital. The sweet spot is usually the number that balances efficiency with the type of investors you want to attract.

Ricardo R. · Answer

Hey Kyle,

We’ve worked with a lot of small and mid-size investors through our property management and investment side, and although we don't lend we certainly work with partners that do, so here’s what we typically see:

1. Common Loan / Investment Sizes

• Small partnerships & local deals:


$10–25K is common for friends-and-family type investments or single-property joint ventures.


Works best when the deal is simple—e.g., one rental property, clear cash flow split.
• $10–25K is common for friends-and-family type investments or single-property joint ventures.
• Works best when the deal is simple—e.g., one rental property, clear cash flow split.
• Private lending for flips or rentals:


$25–50K minimum is typical because it covers a larger portion of the purchase or rehab costs and reduces admin headaches with multiple small investors.
• $25–50K minimum is typical because it covers a larger portion of the purchase or rehab costs and reduces admin headaches with multiple small investors.
• Syndications & larger deals:


$50–100K+ minimum is standard—those investors expect formal reporting, legal structuring, and professional management.
• $50–100K+ minimum is standard—those investors expect formal reporting, legal structuring, and professional management.

Small partnerships & local deals:

• $10–25K is common for friends-and-family type investments or single-property joint ventures.
• Works best when the deal is simple—e.g., one rental property, clear cash flow split.

$10–25K is common for friends-and-family type investments or single-property joint ventures.

Works best when the deal is simple—e.g., one rental property, clear cash flow split.

Private lending for flips or rentals:

• $25–50K minimum is typical because it covers a larger portion of the purchase or rehab costs and reduces admin headaches with multiple small investors.

$25–50K minimum is typical because it covers a larger portion of the purchase or rehab costs and reduces admin headaches with multiple small investors.

Syndications & larger deals:

• $50–100K+ minimum is standard—those investors expect formal reporting, legal structuring, and professional management.

$50–100K+ minimum is standard—those investors expect formal reporting, legal structuring, and professional management.

2. How Most Investors Handle Minimums

• Some set a minimum as low as $10K for first-time or local investors to get them in the door.
• After trust builds, future deals often jump to $25–50K minimums because investors reinvest returns or bring more capital.

Some set a minimum as low as $10K for first-time or local investors to get them in the door.

After trust builds, future deals often jump to $25–50K minimums because investors reinvest returns or bring more capital.

3. Balancing Time vs. Capital

• Admin work grows fast with too many small investors.
• Many operators set $25K as the standard minimum, but allow smaller amounts on the first deal to start relationships.

Admin work grows fast with too many small investors.

Many operators set $25K as the standard minimum, but allow smaller amounts on the first deal to start relationships.

My Opinion:
$10K isn’t “too small,” but expect more admin work if you go that low. Many start smaller to build investor trust, then raise minimums once they have a track record and investor pipeline.