Hello! I am slowing funding my Self Directed IRA, and have a small amount of cash available. Has anyone experience Peer Lending? Might this be a good way to get that cash to work?
@Rose San Filippo its a great way to put your money to work. You can also invest in deals through your IRA, could bring in great profits
Even with a small amount you can lend to others. If you have 10k or 15k you might be able to lend to someone you know who is in the real estate game who might need a little help to finish a project or needs a little cash for a sub-to deal. It would be a 2nd position, but if you know and trust the person then there should be no issues.
@Rose San Filippo To grow you Ira you want to look at your return on investment ROI at a minimum. I am one of the founders of CamaPlan, a self directed Ira company. Many clients use peer to peer lending to build up their accounts. @Rick Pozos makes a great recommendation not only do you build your Ira but you gain information from working with investors in your area and learn from there endeavors. Many times the ROI is better. I hope this helps. Good luck.
I'm familiar with a couple of the 'peer to peer' lending sites (Lending Club and Prosper). They have a huge amount of detailed information on their sites regarding risk/reward of lending to consumers in the form of unsecured fractionalized loans. Worth investigating but I encourage you to take time and read the information provided before proceeding -- an unsecured loan has higher risks to the lender as well as the potential for higher returns. Weigh the pros/cons carefully before proceeding.
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