Similar Checkbook IRAs -- Maine

[Bernie Huckestein]

To Partner:

I understand that buying and flipping RE from a checkbook IRA is considered and active business and as such could be subject tax (UBIT?).

I have an idea which I am sure it not original to me...want to solicit some guidance.

I can setup a checkbook IRA with $150k in it. Thinking that if I found another investor (local) who also wanted to flip and had $150 in a checkbook IRA perhaps we could loan each other $ out of the respective IRAs...the parameters (LTV, property type, ARV would all have to be within range -- the fees and interest rate being the same. I was only considering this a a "local" partnership agreement so that each party could be comfortable with values / drive past their investment (the IRA investment) -- I suppose this could be done at a distance but I myself am a little nervous about lending my money on a project hundreds of miles away.

Appreciate your related thoughts and experience

b