Self-directed IRA/401k - conflict of interest triggers "prohibited transaction"?

[Ravi Veer]

Hi,
I am planning to start an LLC to purchase a real estate. My friend's IRA (IRA-A), my IRA (IRA-B), my friend (A), and me (B) are planning to invest. I have been reading up on IRA-LLCs and have a couple of questions.

The residential property will require a total gut job for which I plan to be the General Contractor.

1. Can any services be provided by disqualified person (A or B) to the LLC? Or, will 4975(c)(1)(c) construe it as "prohibited transaction"? Also, will it be considered as transferring value from the IRA beneficiary (A or B) to the plan (IRA-A or IRA-B) triggering "excess contribution" (per Tax Court Memo 2012-168, or Commissioner Email CCA_2009112409523350)?

2. Can the IRA plan beneficiary (a Disqualified Person) even make decisions on where to invest? Isn't that considered "furnishing of goods, services, or facilities between a plan and a disqualified person" per 4975(c)(1)(c), hence a prohibited transaction?

Ravi