How can I best partner with my SDIRA?

[Account Closed]

I've been contemplating how I can best partner with my SDIRA Checkbook LLC so that we both benefit. I understand that I cannot simply straight borrow from it, even if the terms are on par with the market. However, can I establish an LLC - which is it's own separate entity - and lend to the LLC? And just going out on a limb here, if I cannot/should not do so because I am a disqualified person, can I simply register the LLC in a state with excellent privacy laws?

I am looking at a property to rehab and cash-out refinance but would rather work with the SDIRA Checkbook LLC as a private/hard money lender instead of using a third party.

So, I am sure there will be a lot of 'you can't' thrown around. Even so, in true Rich Dad fashion I'd like to ask 'How Can I?' Options?

Moreover, If someone does engage in prohibited transactions, how would the IRS ever find out? Will it only be discovered during an audit or are there some other checks and balances in place?