Private Placement Memorandum Costs & Self Directed IRA

[Shawn M.]

I am buying a property and want to have an out of state friend be a 20% equity partner in the investment. However he wants to use his self directed IRA. The IRA custodian says that we need a PPM in place to have him invest in my LLC.

It seems like a lot of paperwork to have him invest, Why do we need to register with the SEC and how much will all that cost?

The property is a 4 family and I would be 80% owner and he would be a silent 20% owner. 

Any advice on how to do this?