UDFI Question (related to SDIRA)

[Mike Helminger]

I read through this post (and several others) and am trying to grapple with the idea of UDFI:
https://www.biggerpockets.com/...
Scrolling down a bit, Chris Wooten states the following in the comment section: 
I’m not a CPA. If the syndicator is strictly providing you returns based on a preferred share or percentage of buy-in, then the syndicator is
holding all of the leverage, and you would not need to concern yourself with UDFI/UBIT.

Is this true? For example, if I invest in a self storage syndication, with 70% LTV, and I have a fractional share and only receive net distributions from the fund (quarterly or at liquidation events), would UDFI not apply to an account held in a SDIRA?