Best way to structure deal in SDIRA
I would like to purchase a lower value performing note within my SDIRA but would like to partner with a fellow investor who does not have an IRA. Example: Performing note, $15,000 paying 15% interest only then paying remaining balance after 1 year. My fellow investor is OK with a 9% return and will invest $10,000, I will invest $5000. I will get 15% interest only payment for the $5000 that I invested returned to my SDIRA and my investor will get 9% interest only for their $10,000 and I will keep the remaining 6% interest on their $10,000 for finding the deal.
What is the best way to structure this deal within my IRA? Am I better off borrowing the $10,000 from my investor and paying them back at 9% interest only then paying off their $10,000 at the end of the year when the note pays off or am I better creating a JV situation? LLC? What are the pros and cons of each? Is there a better way to structure the deal so I am not paying UBIT or debt financing within my SDIRA?
Thanks for the help!