Self Directed IRA - Flipping Contract

[William Jenkins]

I need a little tax advice on the use of a self directed IRA to flip a contract. Here is the opportunity.....

I've got a property I am interested in purchasing.  I am fairly confident that I can flip that contract immediately to a fund that I work with and then have them close directly on the property.  I would be looking to execute an assignment with an assignment fee to be paid to me at closing.  

I don't have any experience with self directed IRA's (I am sure I can figure this out), but was more concerned with the tax ramifications of using a self directed IRA to flip a contract. If I can make it work, it would save me a substantial amount of taxes.

I would then plan on taking those funds (profit from the flip) and either (a) investing it in other self directed eligible assets (RE, LLC interests, etc.) or (b) transferring it back to a traditional brokerage firm and to simply invest it in equities.

Questions:

1. I wouldn't be opening this IRA for just this deal or flipping in general (may invest in longer term assets later on down the road), but would this transaction cause any UBTI to me personally? FYI... I am a broker, but not in the state that I would be buying this asset in. I don't think I would necessarily be considered an active participant.

2.  Any other red flags you can think of from a tax or legality standpoint?

If I go though with it, I will be seeking professional tax advice beforehand, but just wanted to get a feel for what others with experience in this have to say.