Self Directed IRA - how to with other people’s money

[Paul Duncan]

What is the best method to use other people’s money with a self directed ira? My goal is to use money in someone’s ira (whether my mom, mother in law, or family friend) to purchase real estate.

I haven’t talked to any of the custodial companies yet but been looking at some of the information on their websites. A lot of it seems to be geared towards if you were using your own money to purchase real estate. Is it safe to assume the best way to use other people’s money is to set up a company where they are basically investing in a company I set up? Then, with that company I go purchase real estate?

I think I've seen some stuff related to it having to be non recourse loans, but if the LLC purchases a property with a loan and me as the guarantor, is that different? Would their be any issues with a family member investing in my "start up" company?

If you have better ways to invest with other people’s self directed ira, please let me know!