Skip to content

PLP-027 – How much money is needed to become a Private Lender?

What You Will Earn on this Episode:

One of the most frequent questions I receive is:  “how much money do I need to become a private lender?”  The person asking the question will then go to qualify this question by saying they don’t have a big IRA, they don’t have any 401k’s that they can roll over, and they don’t have a large sum of inherited cash.  How does a person get started if they’re darn near broke?

While you absolutely need to save up a sum of money in order to lend it out to others, a small amount of money shouldn’t discourage you from becoming active and involved in Private Lending.    Obviously the more money you have to lend, the larger your pool of options will be, but just remember this:  Everybody has to start somewhere

3 Key Points to Consider:

1 – You can begin lending with just a few thousand dollars

2 – A way to determine if your employer would allow you roll over a portion of your retirement plan (401k, 403b, etc), while still being employed:  an In-Service Distribution/Withdrawal.

3 – If you don’t have much to lend, your primary concern should not be the interest rate and amount of money you potentially earn, but rather building your network, and therefore building your Net Worth.

Don’t forget, you can find certain key words and phrases at the Glossary of Terms



Get 25% off your Quest IRA Expo tickets with promo code:  BakerExpo

Click the image below to purchase your tickets!

Don’t forget to email any questions to


Be sure to attend the next meeting of. . . . . .

713 REIA

Hosted by Landon Rothstein & Ray Sasser

Where Deals Get Done!



Please donate to the Texas 100 and make sure owner finance rights are understood and upheld!  Click Link Below!!

“OUR voices must be heard at the State and Federal levels!” – Texas 100

About the author, Keith Baker

My ultimate goal is to create an economy for Real Estate (and other) Investors where banks are no longer needed. An economy where every day people look to each other for leverage and support. During the day I am an insurance adjuster for the oil field, where I handle millions of dollars of other people's money (OPM), and by night I invest in Real Estate and host this podcast. I hope you have an excellent experience and find real value within this website and the Private Lender Podcast. Please leave comments or submit your questions on the Contact Page.

I wish you prosperous, safe and happy lending and investing!

Thanks for listening


Leave a Comment

Scroll To Top