UDFI in Self Directed IRA Investing in a Real Estate Fund

[Steeve Breton]

Hi All,

I've been investing with my SDIRA for years. I mostly stick to loans/notes or none-leveraged assets. I now have an opportunity to invest in a Mobile Home Park fund. The fund holds single property LLCs. Each LLC has approx 75% leverage on the property it holds. The Fund itself does not use leverage to purchase the LLCs. My $100,000 question is: Would *UDFI be triggered if investing in a fund which owns leveraged LLCs? ... does the Fund offer a degree of separation between my IRA and the leveraged LLC sufficient to nullify UDFI?  

I am pretty certain that UDFI would be triggered in the following scenarios (please confirm #2). 1. I buy a property in my IRA using a loan or 2. I invest, as a passive/limited partner, in an LLC which owns a leveraged property.

*unrelated debt financed income