How to partner with your SD IRA to construct a deal?

[YiBing T.]

Hello BP,

I recently came across a deal. The property is in the suburb area of Baltimore County, Maryland. The deal requires all cash and since we don't have that much cash on hand, I am thinking of partnering my LLC, and self-directed IRA accounts from my mother, wife and my old 401k. I heard there are a lot of restrictions but I am interested in trying it out for the first time. Here is the breakdown of the deal, would you provide your opinion on this?

• Partner 1: my own Self Direct IRA LLC (out of state LLC, somewhere low cost)
• Partner 2: my wife's Self Direct IRA LLC (out of state LLC, somewhere low cost)
• Partner 3: my mother's Self Direct IRA LLC (out of state LLC, somewhere low cost)
• Partner 4: an LLC that is owned by both my wife and me.

Partner 1-4 contribute funds to a Maryland LLC to title the property.

Has anyone done deals like this before? Would you mind sharing how you construct a real estate deal? Would my planning violate any IRS rules for self-directed IRA? The only thing I am not sure about is my LLC is owned by me and my wife.

Thank you very much. 

Yibing