Self Directed IRA - Investing with "Disqualified Persons"

[Tyler Smith]

Hi All, 

I recently started a real estate investment company (50/50 ownership between me and my business partner) and am getting ready to launch the first fund.  

A few of my investors have inquired about investing via self-direct IRA, so we will likely make that an option. Upon hearing about this, my dad (who was going to invest anyways) thought this sounded like an interesting option. However, it looks like this would be in conflict with the "disqualified persons" rules (since I own 50% of the holding company).

I was wondering if there are any workarounds for this specific case. My dad has other financial resources to invest but using IRA funds would be the most logical and convenient. Since he will be treated like any other investor in the fund, and is simply looking at this as a good investment opportunity, it seems as if this rule is somewhat overly restrictive.

I will definitely engage my accountant on this but thought it would be worth checking if the BP community had any insights. 

Thanks!