Self Directed Roth IRA used for Wholesaling Real Estate

[Greg Bonhotal]

At a recent one day guru seminar, they seemed to indicate that a Self Directed Roth IRA could be used by a wholesaler to pay the down payment to a distressed seller when putting their home under contract.

They used the example of $100 Paid to seller from the Self Directed Roth IRA, then when the contract is resold, the money from the buyer of the contract would be paid directly into the Roth IRA, at closing.

So a $100 investment would return $5000 to $10,000 in theory.

This seemed too good to be true, but I had to ask.

It seems to indicate there would be no practical limit to how much you could add to a Roth IRA in a year.

It also seems to indicate that all the proceeds from wholesaling would never really be taxed.

If this is not allowed, Is there a best practice for Wholesaling in a Self Directed Roth IRA for most ALLOWED benefit?

I am new to investing, and apologize if this is a crazy question.

Thank you for all you teach me on Bigger Pockets!

P.S I didn't buy the Course.