Private Lending with Friends and Family with SDIRA

[Account Closed]

I will be using friends and family as private lenders to fund the down payments for my rehabs. In this partitular situation I have a friend who wants to lend with his New Direction IRA as a custodian.

NDIRA has fees for each transaction as I am assuming most IRA custodians do. Two things I am trying to accomplish:

1. trying to avoid/reduce the fees

2. keep the process as simple as possible for my lenders as they are not sophisticated investors

I was thinking the best way to do this is create an LLC (syndicate LLC) that my lenders invest in and keep their money there. The syndicate LLC lends to my LLC that will use the money for down payments.

Questions:

• Am I headed in the right direction with my structure thoughts?
• Do I create an LLC for each investor?
• Who owns the syndicate LLC?
• How do taxes work for that LLC?
• Do securities laws pertain to family and friends?

I am sure there are many other things I have not thought of.

Thank you in advance for your advice.

Nir