Using Parents Self-Directed IRA for RE funds

[Isaac Kennedy]

My parents have some money in their IRA they would like to use to invest in some RE deals I've been working on. We would create an LLC and share ownership. I mentioned this to a colleague and they seemed to think this could fall under some restrictive rules (ie Parents can't invest in their children with self-directed IRA). Was he right? Does anyone have any insight on this? I've tried to do some research online but came up with nothing. Thanks in Advance!