Partnership structure with Self-Directed IRA

[Amanda Williams]

Hello! I am trying to figure out the best way to structure a partnership opportunity for one of my upcoming land development projects. I will be purchasing land, subdividing, and building 5 homes. I have a partner/investor who wants to fund the land purchase and development expenses via a self-directed IRA while I will be taking care of everything else including the construction loans. Initially, we were going to form an LLC, however this will present issues with construction loans. The lenders won't lend to an LLC with a custodian as a member and the investor does not want to be a personal guarantee on the construction loans. I was thinking that a Joint Venture may be the way to go? Does anyone have any experience or advice on this? Thanks in advance!